INTC Stock Forecast: Can Lip-Bu Tan Create the ‘New Intel’ That Pat Gelsinger Couldn’t?

Last week, Intel (INTC) appointed Lip-Bu Tan as its new CEO, and in his message to employees, he talked about creating the “new Intel.” Notably, when his predecessor Pat Gelsinger took office in 2021, he also embarked upon “transforming” Intel under the IDM 2.0 strategy, which in hindsight, we know did not go as planned. 

Gelsinger’s strategy did not yield the desired results, and the once iconic chip company continued to sink deeper on an absolute as well as relative basis. The year 2024 turned out to be the worst year for Intel stock in more than one way. INTC lost 60% of its market cap — its worst price action in history — while posting a record net loss of $18.8 billion. The company announced 15,000 layoffs, again the highest in its history, and also had to suspend its dividend amid soaring losses and rising cash burn.