Intel (INTC) CEO Lip-Bu Tan has a tall task ahead of him. The recently appointed executive has to turn around an ailing Intel that’s not only fallen behind in the AI race but is losing market share in its core PC business to longtime and upstart rivals.
Shares of Intel are off a staggering 50% over the last 12 months as the company has struggled with sliding quarterly revenue. And its foundry business continues to weigh on its balance sheet.
As of 2:33:03 PM EDT. Market Open.
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But Tan isn’t discouraged. Instead, the former Cadence Design Systems (CDNS) head says he knows what it takes to return Intel to its former glory, though he admits it will be difficult. During his first public comments as CEO during Intel Vision 2025 on Monday, he laid out his plans for the company.
“I love this company. It was very hard for me to watch it struggle. I simply cannot stay on the sideline knowing I could help turn things around. I also fully recognize it won’t be easy,” Tan said.
“For quite a long time, we fell behind on innovation. As a result, we have been too slow to adapt and to meet your needs. You deserve better, and we need to improve. And we will,” he added.
But it will take a concerted effort to not only revive Intel, but turn it back into the crown jewel of America’s chip industry.
During his speech, Tan put the blame for Intel’s current situation squarely on the company itself.
“I will pull together strong teams to correct the past mistakes and [start] to earn your trust,” he said.
Bernstein analyst Stacy Rasgon said that while Tan’s speech was light on details about how exactly he’ll address Intel’s shortcomings, his candor about wanting Intel customers to call out the company when it fails to deliver is a welcome change of pace compared to former CEO Pat Gelsinger.
“Hoping for more concrete actions was likely unreasonable at this point anyway, and at least he clearly does not suffer from the almost delusional optimism that torpedoed his predecessor,” Rasgon wrote. “Underpromise and overdeliver sounds like a much better way to handle things for now.”
Tan says one of his key tasks is to bring in top talent to ensure the company is able to develop the right products and capture more customers.
“We are going to refocus the company on essential ingredients of innovation, and clearly I need to focus on strengthening my balance sheet,” he explained. “And I need to really drive efficiency and I need to really regroup the talent we have and attract some other new talent.”
Intel is contending with a slew of problems that have damaged its standing in the tech world. That includes an inability to innovate and catch trends, like the AI boom, and delays in developing and rolling out new chip technologies.
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