Intel's New CEO Plans Major Overhaul in AI and Manufacturing

Intel's new CEO Lip-Bu Tan is implementing significant changes to revive the company, particularly focusing on restructuring its chip manufacturing and AI strategies. Tan plans to streamline operations by addressing slow-moving middle management and potentially implementing layoffs, while also expanding Intel's foundry services to external clients like Nvidia. The company aims to enhance its performance in AI server chips and explore new markets in software and robotics. This strategic shift comes after a decade of missed opportunities and a reported $19 billion loss in 2024. Since Tan's appointment, Intel's stock has surged nearly 25%, reflecting investor optimism about his plans. Analysts suggest that these changes could restore Intel's competitive edge in the semiconductor market, which has been dominated by companies like Arm and Nvidia.