Is Intel Ready to Compete With Nvidia and AMD Under New Leadership?

$Intel(INTC)$ has officially announced a major personnel change—Lip-Bu Tan has been appointed as the new CEO, effective March 18, 2025. Upon the announcement, Intel's stock surged by 12% in after-hours trading.

1. Three Top Chip Giants Now Led by China-Background CEOs: Nvidia's Jensen Huang, AMD's Lisa Su, and Intel's Lip-Bu Tan.

Now, Chinese CEOs are at the helm of major semiconductor companies, with Jensen Huang leading Nvidia to dominate the AI and GPU sectors, propelling the company's market value to over $3 trillion;

Lisa Su led $Advanced Micro Devices(AMD)$ to increase its market value from $3 billion to over $200 billion, surpassing Intel for the first time;

Wei Zhejia, who took over as Chairman of $Taiwan Semiconductor Manufacturing(TSM)$, continues to drive innovation in the global semiconductor industry;

and Liang Jianhou has turned $SUPER MICRO COMPUTER INC(SMCI)$ from a motherboard company into a multi-billion-dollar tech enterprise.

2. After Intel's 12% Surge: Is It Poised for More Gains?

Last August, $Starbucks(SBUX)$'s appointment of a new CEO, who led the company to an 800% stock increase, resulted in a 25% jump in its stock on the day of the announcement. Despite recent declines, Starbucks is still above the level from the day of that surge.

Bulls vs. Bears of Intel New CEO

As a technology leader with over 20 years of experience in the semiconductor industry, Lip-Bu Tan served as CEO of Intel’s key supplier, $Cadence Bank(CADE)$ Design Systems, from 2009 to 2021. During his tenure, he doubled the company’s revenue and saw its stock price surge over 3200%.

Tan, with an engineering background, has already raised confidence in Intel's ability to innovate, particularly with its 18A production technology.

However, market expectations do not always align with actual performance.

A month ago, the market speculated Intel might split its foundry and chip design businesses, pushing the stock higher.

However, Tan has signaled that he will stick with his predecessor's plan to continue making chips for other companies. If the company does not split, Intel will need to prove it can produce more competitive products.

Intel is still playing catch-up in the data center AI chip space, with Nvidia's dominance in this area presenting a significant challenge. Additionally, Intel lacks a clear AI strategy, which could impact its long-term development and market positioning.

3. A Major Semiconductor Event Next Week Apart from Intel

Nvidia’s upcoming GTC conference, from March 17 to 21, 2025, will be a key turning point.

The major highlights include:

New products and AI ecosystem upgrades: Nvidia will update the Blackwell Ultra architecture and the next-generation Vera Rubin GPU, along with announcing updates to CUDA.

Reducing competitive noise: Nvidia will emphasize the TCO advantages of its GPUs and its market dominance, especially with the trend of hyperscale data centers developing custom chips.

Breaking the trillion-dollar market ceiling: Jensen Huang anticipates a $1 trillion upgrade in global general data centers, and Nvidia will showcase how its new products can expand market share while driving AI efficiency and investment returns.

Do you believe Intel will continue to rise and break the $30 mark?

Do you think Intel should split its foundry business?

Can the new CEO significantly enhance professional capabilities and even venture into the AI sector based on existing business?

Are you excited about the surprises Nvidia’s GTC conference might bring?

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