Why Intel Stock Is Surging Thursday

Intel Corp INTC shares are rising Thursday after the company announced a new CEO.

What Happened: After the market close on Wednesday, Intel announced that its board appointed Lip-Bu Tan as CEO, effective March 18.

Former CEO Pat Gelsinger announced his retirement in December after reportedly being forced out by the board. Tan succeeds interim co-CEOs David Zinsner and Michelle Johnston Holthaus. He will also rejoin Intel’s board, which he stepped down from last year.

“I am honored to join Intel as CEO. I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders,” Tan said.

“Intel has a powerful and differentiated computing platform, a vast customer installed base and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap.”

Check This Out: Lip-Bu Tan Got High Praise From TSMC Founder Morris Chang For Saving Cadence From ‘Pretty Big Trouble’ — Will The Magic Work At The ‘New’ Intel

Tan has more than 20 years of experience in the semiconductor and software space. He formerly served as CEO of Cadence Design Systems from 2009 to 2021.

Zinsner will remain executive vice president and CFO and Johnston Holthaus will remain CEO of Intel Products.

BofA Securities analyst Vivek Arya upgraded Intel from Underperform to Neutral on Thursday and raised the price target from $19 to $25.

INTC Price Action: Intel shares were up 13.7% at $23.51 at the time of publication Thursday, according to Benzinga Pro.

Photo: Shutterstock.