Can Lip-Bu Tan change Intel’s Ailing Fortune?

 Lip-Bu Tan is the new CEO of Intel. It has come at a time when Intel is struggling in all fronts. It is no longer the sole market leader in chip making industry. Its long time rival AMD is no longer the distant competitor it once was. Then came Nvidia and managed to make chips for AI technology and is now the market leader.

So, Lip-Bu Tan has got the job of CEO at a very tough time. Just 3 months ago, Pat Gelsinger was forced to resign after Intel suffered massive loss in revenue and as a result, share prices took a huge beating:

Why did directors conclude Gelsinger’s plan was not working? Many reasons, including insufficient revenue from chip manufacturing contracts with Microsoft and Amazon, a 33 percent drop in Intel’s revenue, and a 66 percent plunge in the company’s stock price under his tenure, noted CTech, as well as a $16.6 billion loss in the quarter ending in Q3 2024, according to CNBC.

 Things look only bad at the moment. 15% of workforce is to be removed and that cut down in jobs is not a good news for a company like Intel. Intel did not do enough to address the growing market of smartphones during 2006-16 and its failure here has now come back to haunt them as smart phone has become a lucrative market for the tech companies.

So, is there any good news for Lip-Bu Tan. Yes, there is. There has been a sense of relief to have a CEO and its stock jumps 12%.

So, all the best for Lip-Bu Tan to change things for Intel.