Intel on Wednesday named veteran technologist Lip-Bu Tan as the chipmaker's new chief executive officer. Intel stock rallied in late trades.
Intel said Tan, who served as CEO of Cadence Design Systems, will succeed interim co-CEOs David Zinsner and Michelle Johnston Holthaus, the company announced.
The announcement capped a period of uncertainty for the Santa Clara, Calif.-based semiconductor giant which stunned the tech world when it announced the sudden departure of former CEO Pat Gelsinger.
Gelsinger's unexpected exit triggered a sell-off in Intel shares. It also underscored Intel's growing challenges in the face of stiffer competition from rivals Nvidia and AMD, and concerns that it has fallen behind in AI.
Intel said Tan will rejoin the Intel board after stepping down in August 2024.
Zinsner will remain as chief financial officer, while Johnston Holthause will remain as CEO of Intel products.
In a statement, Frank Yeary, who served as interim executive chair of the board during the CEO search, described Tan as "an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO."
Intel stock jumped more than 10% to 22.88 in late trades.
