This Beaten-Down Semiconductor Stock is Up 11% After Hours, Here’s Why

Intel Corporation (INTC) gained 4.5% in the regular session today, and the semiconductor stock is extending its gains in electronic trading with an after-hours gain of 11% as investors react to a significant leadership change. After the closing bell today, Intel announced the appointment of Lip-Bu Tan as CEO effective March 18, 2025, succeeding interim co-CEOs David Zinsner and Michelle Johnston Holthaus.

Intel’s New Top Exec

Tan, a seasoned technology leader with over 20 years of semiconductor and software experience, brings an impressive track record from his tenure as CEO of Cadence Design Systems (CDNS), where he drove substantial revenue growth and delivered remarkable stock price appreciation of over 3,200%. 

The appointment comes at a crucial time as Intel works to accelerate its turnaround efforts, rebuild its process technology roadmap, and strengthen its manufacturing footprint. The new CEO's deep relationships across product and foundry ecosystems, combined with his customer-centric approach to innovation, position him well to address Intel's strategic priorities. 

Following Tan’s appointment, Frank D. Yeary will return to his role as independent chair of the board, while Zinsner will continue as CFO and Johnston Holthaus will remain CEO of Intel Products.

Putting Intel's After-Hours Rally in Context

Intel's stock has been significantly underperforming compared to its semiconductor peers, with a staggering decline of 54% over the past 52 weeks. Even accounting for today’s after-hour surge, the stock remains below its 200-day moving average at $24.00, which has been highlighting its longer-term downward trend. 

INTC’s relatively low standard deviation of 0.87 does reflect lesser price volatility than Advanced Micro Devices’ (AMD) 1.81 and NVIDIA's (NVDA) 1.53 - but in this case, it reflects a consistently negative trend, rather than stability.

Is Intel a Good Chip Stock to Buy Right Now?

While Intel's currently discounted stock price might appear attractive as a "buy the dip" opportunity, the company's negative earnings per share and concerning financial ratios, including negative return on equity (-3.27%) and profit margin (-35.32%), suggest fundamental challenges that need to be addressed before considering it a strong investment. 

Given these factors, while Intel remains a significant player in the semiconductor industry, it would be prudent to wait for signs of improved financial performance and operational execution before rushing to invest in INTC’s turnaround.