Intel's New CEO Lip-Bu Tan Plans AI and Manufacturing Overhaul; Shares Surge

Intel's incoming CEO, Lip-Bu Tan, plans significant changes to the company's AI and chip manufacturing strategies. This includes staff cuts targeting middle management and revamping manufacturing operations to better serve external clients. Tan aims to improve Intel Foundry's performance by attracting new customers and restarting AI server chip production. Intel's stock rose over 8% following the news. Tan's strategy involves fine-tuning the company's contract chip manufacturing to compete with TSMC. He plans to improve Intel's chip manufacturing processes to attract large customers like Nvidia and Google. Intel reported a $19 billion loss in 2024, its first since 1986. The company aims for an annual release schedule of AI chips, but a new architecture is not expected until at least 2027.