Intel Faces Make-Or-Break Moment: Can New CEO Lip-Bu Tan Turn It Around?

Intel Corp INTC just got a new captain, but it's going to take more than a fresh face to turn this ship around. CEO Lip-Bu Tan has stepped in with bold plans to spin off non-core units, add more engineers, and – perhaps most notably – ask customers for unfiltered feedback.

Wall Street, it seems, is already offering its own critique, with Intel stock struggling to find firm footing despite some bullish signals.

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Intel Stock’s Technical Tug-Of-War

Intel stock has been on a rollercoaster, down nearly 50% over the past year but up 10% year to date. The current trend is moderately bearish, with the stock sitting below key moving averages, though buying pressure suggests some hope for a bullish reversal.

The eight-day simple moving average of $23.43 and the 20-day simple moving average of $22.87 both signal a bearish outlook, with the stock price currently at $22.28. Meanwhile, the 50-day simple moving average of $22.32 gives some hope, with a nearly-bullish signal.

Longer term, however, the 200-day simple moving average at $23.57 suggests Intel stock still has work to do. The Moving Average Convergence Divergence (MACD) indicator sits at 0.20, hinting at potential bullish momentum, while the Relative Strength Index (RSI) of 45.57 indicates the stock is nearing neutral territory.

Tan's Plan: Leaner, Meaner, & More Responsive

Tan isn't sugarcoating Intel's struggles, openly admitting the company has lost talent and fallen behind in artificial intelligence chips, reported Reuters. Nvidia Corp NVDA, now boasting a $3 trillion market cap, has run laps around Intel in the AI race.

Tan's response? Cut the fat and focus on execution.

The CEO is putting a premium on customer feedback, telling Intel's Vision conference audience, "Please be brutally honest with us." He's also promising to bring back engineering-driven innovation, a shift from Intel's recent missteps in execution.

Investors, however, aren't convinced just yet. Intel's stock saw a slight boost after Tan's appointment but has since faded, dropping another 1.2% after his latest remarks.

Wall Street's verdict? Tan has a vision – but making it a reality won't happen overnight.

For now, Intel's stock remains stuck in a tug-of-war between bearish trends and glimmers of bullish potential. The real test? Whether Tan's brutal honesty can translate into a brutal comeback.

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