Intel’s Comeback Blueprint: New CEO Reportedly Aims To Shift Focus To Foundry, AI

• Intel CEO Lip-Bu Tan said he took charge to “refocus” the company’s engineering and foundry operations.
• The semiconductor major’s Q3 earnings last week beat expectations.
• Retail sentiment on Stocktwits remains bullish; Intel shares have surged 95% year to date.

Intel’s new Chief Executive Officer, Lip-Bu Tan, is sharpening focus on the chipmaker’s engineering and foundry operations to reclaim its dominance in the semiconductor market. Tan said that he accepted the role to “refocus” the company’s operations.

Intel stock (INTC) edged 0.13% lower in pre-market hours on Tuesday, just shy of its 52-week high of $41.12. 

According to a Bloomberg report, Tan said the firm had grown weighed down by “too many layers of management,” which he believes contributed to its slide. 

He joined Intel as the CEO in March this year. Speaking at the Future Investment Initiative (FII) in Riyadh, he is said to have reiterated the emphasis on shifting toward the segment that manufactures chips for third-party customers and a stronger focus on AI-related output for the company.

Strong Q3 Earnings Print

The California-based semiconductor manufacturer posted a stronger-than-expected earnings last week, with revenues rising 3% year-over-year (YoY). The earnings showed a renewed momentum in both its core PC and data center businesses. It was Intel’s first earnings report since the U.S. government became the company’s top shareholder in August with a 10% stake.

Some brokerage firms have been positive on this chipmaker, with HSBC raising its 12-month target to $26 and BNP Paribas revising its estimate to $30, citing improved fundamentals. 

What Is Retail Thinking?

Data on Stocktwits showed that retail sentiment tempered to bullish as of early Tuesday from ‘extremely bullish,’ amid ‘high’ message volumes. 

Intel shares have surged 95% year-to-date (YTD). 

Read Also: What To Expect From Nvidia CEO Jensen Huang’s GTC Washington Keynote

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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