The shares of Intel increased nearly 15 % on Thursday, as Wall Street chanted its decision to name the former Board of Directors as an executive chairman. Tan left in August due to differences about the direction of the chips maker after the company suffered for several years.
Tan will be assigned to revive the company’s fortunes after he missed the semiconductor boom that depends on artificial intelligence, while billions of dollars plowed in building her work in the chips. Intel has published several quarters of the loss of its share in the market in data centers and personal computers, in addition to the losses of one billion dollars in its work in the field of manufacturing, and over the past five years, the stock has lost about 60 % of its value, a period of time when the NASDAQ boat and S&P 500 are increasing.
TD Cowen said: “Tan was in an executive head of Intel well as stakeholders could have hoped,” noting that “profound relationships” through the ecosystem of chips that could attract customers to the company’s contracts manufacturing work. Tan Helm will take next week, three months after the CEO of Intel Pat Gelsiner. Tan was brought to the Board of Directors two years ago to help the company’s heart, but left due to the differences about the size and culture of the company’s workforce. Doubts about the future of Intel have deepened in recent months amid reports that competitors, including Broadcom, were evaluating the works of chips and marketing design, while TSMC separately studied control of some or all of its factories.
Analysts expect that Gelsiner will follow the preservation of chips design and manufactures together, a lavish plan in a letter to employees by pledging to make Intel the best Foundry, an industrial factory for the contract chips factory. Some analysts said that Foundry may find it difficult to extract requests from cautious chips from the covenant to a competitor.
Analysts said Tan, who supervised more than a decade of strong growth in Sadnce Design Systems, an Intel supplier and a chips design company, has strong credibility as a “neutral party” that can help Intel overcome some challenges.
Stacy Rachton of Bernstein Research said that the two -year period of Tan in the Intel Council would help his efforts.
“He should have given him a good idea of the place where all the bodies were buried, and it should be a lot in his assessments and expectations from the previous leadership (it has been proven that optimism is not banned is a decline in Pat).”
After promoting the newsletter
However, it is expected that any transformation of years will take it, and Tan has not hinted in his letter to the employees. Intel’s market value remained less than $ 100 billion for the first time in three decades after shares fell 60 % last year, and Gaudi Ai chips lost sales targets.