Intel Names New CEO, Shares Soar Over 10% After-Hours

Intel has appointed Lip Bu Tan as its new CEO, in an attempt to lead the company out of its difficulties. Tan will officially take over on March 18, and the news caused Intel's stock to soar more than 10% after hours. Tan has extensive experience in the semiconductor industry, having successfully led Cadence Design Systems Inc. through a difficult period and achieving growth. He will replace Pat Gelsinger, who was sacked after failing to effectively turn around Intel. Intel currently faces numerous challenges: competitors such as AMD and Nvidia are eating into Intel's share in the personal computer, server, and artificial intelligence chip markets. Gelsinger's chip manufacturing transformation plan has yet to bear significant fruit. The gross margin has fallen from a peak of 60% to about 30%. The company's financial situation is under pressure and it has had to lay off about 15,000 employees. Intel is also lagging behind Nvidia in the artificial intelligence chip market. Despite the challenges, Intel remains a major chipmaker in the world, dominating the personal computer and server processor markets, and having a large amount of advanced manufacturing capacity. In addition, Intel has received nearly $8bn in funding support from the US government.