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Intel (INTC) has announced that Lip-Bu Tan will be the company's new CEO, effective March 18. Tan was formerly the CEO of Cadence Design Systems. He replaces interim Co-CEOs David Zinsner and Michelle Johnston Holthaus. In the video above, Moor Insights & Strategy founder, CEO, and chief analyst Patrick Moorhead weighs in on the move.
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just now crossing the wires and that's Intel naming its new CEO Lip Butan here to help us make sense of all this news. Patrick Morehead, he is founder, CEO and chief analyst at More Insights and strategy. Uh Patrick, let's get right to this breaking news. Intel saying it has appointed Lipu Tan as chief executive officer. This is effective March 18th. Your immediate reaction to to that news, Patrick. Is this the right choice for Intel in your opinion?
The first thing is not a surprise. He was definitely in the consideration set every time I listed out names. You needed somebody who understood, had experience in leading design and somebody who had a lot of experience around foundries. And I think Lipu Tan uh checks the box on all of those. Uh, you know, I'm going to reserve my judgment of of is he the right guy for the job when I understand any changes to the strategy that uh that they might be considering.
What do you think his priorities will be, Patrick?
Well, I think the first thing that his priority is going to be is is let's put this uh foundry versus design uh to bed, right? Either the company is going to split now or the company will split later or the company won't split at all. And also, uh I know the topic in the run-up you talked about in relation to uh TSMC, but what what needs to be done first and foremost after that, uh you know, to to limit people's questions and risk about the company is is when are we going to see a data center GPU? What are some of the changes that we might see uh to increase time to market in that increased the likelihood of of success because that has really been dragging down the stock uh in the past year and a half in addition to some of the share loss uh to AMD.
You know, this stock is surging here in the after hours on on this news here, Patrick. I you know, it's funny. It was years ago, Patrick, when Intel named Pat Gelsinger CEO. My first phone call, if you'll remember, was to you as well on that day. Um and I got your thoughts. I remember how we talked about, Patrick, there was a lot of excitement about Gelsinger because he was he was a technologist, he was an engineers engineer. Um and there was so much excitement about that background, that resume. Does does Lip Buton have that same type of background?
He has technical chops uh and more and he really is an icon in the industry. Everybody knows him and while he has been uh uh spending most of his time with some of his investments and venture capital, uh he was very successful at as the CEO of Cadence where I believe he ran up the stock 3,000 uh percent. Uh so yeah, he's very technically you have a very technically capable uh CEO at the helm.