Intel (INTC) stock jumped Thursday after the chipmaker announced it's appointing Lip-Bu Tan as its new CEO Wednesday evening.

Chip industry veteran Tan, who previously helmed Cadence Design Systems, takes over from interim co-CEOs David Zinsner and Michelle Johnston Holthaus. The duo succeeded former CEO Pat Gelsinger, who was ousted by Intel's board in late 2024.

Shares of Intel surged over 15% in early trading on Thursday as many on Wall Street welcomed the announcement.

The news came the same day as a Reuters report that a consortium of chip companies — led by TSMC (TSM) and including Nvidia (NVDA) and Broadcom (AVGO) — is in talks to take over Intel's manufacturing business.

But Tan told employees that he'll carry on with an existing plan to work on making Intel a top contract chipmaker, signaling he won't split out the company's design and foundry businesses.

Many on Wall Street welcomed the news, seeing it as adding credibility to Intel's turnaround efforts. "Having followed Mr. Tan's transformative impact on Cadence Design Systems during his 11-year tenure as CEO at that company, as well as many successful outcomes related to investments across the semiconductor universe, we believe that Mr. Tan is uniquely qualified to attempt a reboot of Intel," Stifel analyst Ruben Roy said in a note.

Tan is no stranger to Intel. The new CEO initially served on the company's board in 2022 but left the chip giant in 2024. He reportedly disagreed with Gelsinger on the company's turnaround plan, including its third-party contract semiconductor fabrication business, according to Reuters.

"I am honored to join Intel as CEO," Tan said in a statement. "I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders."

Tan is taking over Intel in the midst of one of the darkest eras in the company's history. The chipmaker has lost its lead in process manufacturing to rival chip builder TSMC and ceded its opportunity to dominate in the AI space to Nvidia.

Shares of Intel have plummeted 54% over the last year as the company's revenue has shrunk from its pandemic highs. It now faces increased competition from longtime nemesis AMD (AMD) and a renewed effort by Qualcomm (QCOM) to break into the PC chip space, threatening Intel's biggest moneymaker.

The semiconductor giant has also received billions of dollars via the CHIPS Act to help pay for new manufacturing facilities in the US, including a massive campus in Ohio. But Intel says a part of the project is delayed and won’t be completed until 2030. It was initially slated to open in 2025.