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Intel’s Stock Surge Following CEO Appointment Amid Foundry Speculations

Key Takeaways

Intel’s stock emerged as the top performer within the S&P 500 this past week after the company appointed a new CEO, igniting discussions regarding its foundry operations.

On Wednesday, Intel disclosed that Lip-Bu Tan, a seasoned leader in the semiconductor industry and former CEO of Cadence Design Systems, will officially take over the reins on March 18. This news propelled the company’s shares upward, reflecting a growth of approximately 17% within the week, closing at $24.05 by Friday.

Analysts from Deutsche Bank have characterized Tan’s appointment as a “desirable outcome” for Intel, noting his deep knowledge of the semiconductor landscape as a significant asset.

Meanwhile, experts at Bank of America suggested that Tan’s leadership could herald a new strategic direction for Intel’s foundry business, which has been under scrutiny and subject to acquisition rumors for several months. Earlier reports from Reuters indicated that Taiwan Semiconductor Manufacturing Company (TSMC) has explored potential partnerships with major players in the industry, including Nvidia, Advanced Micro Devices, and Broadcom, to take control of Intel’s foundry division.

The foundry business is poised to benefit from recent government initiatives aimed at bolstering domestic production of artificial intelligence chips in the U.S. According to the Reuters report, former President Trump engaged TSMC to assist in revitalizing Intel’s operations.

With the gains observed this week, Intel’s stock performance has surged by 20% in 2025, marking it as the leading semiconductor stock on the S&P 500 so far this year. This contrasts sharply with 2024, where the company’s stock experienced a dramatic decline, losing more than half its value.

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