Shares of Intel surged by 14% on Thursday, with Wall Street reacting positively to the appointment of former board member Tan as the new CEO. Tan will focus on revitalizing the company, which has lagged in the AI-driven semiconductor sector despite substantial investments in chip-making. Intel has faced market share declines and financial losses, with a significant drop in stock value over the past five years.

Analysts view Tan's industry connections favorably, anticipating his ability to attract customers to Intel's manufacturing business. Despite some skepticism about Intel's future, Tan is expected to maintain the integration of chip design and manufacturing, aiming to position Intel as a leading foundry.

Tan's successful track record at Cadence Design Systems and his prior tenure on Intel's board are seen as valuable assets for navigating the company's challenges. While a recovery may take time, Tan's realistic approach is appreciated. Analysts emphasize that Intel's revival under Tan's leadership will require long-term efforts, particularly in the AI and CPU markets, and may necessitate strategic partnerships to enhance the foundry business.