Intel's appointment of its new CEO Lip-Bu Tan has created immediate influence on the company: On Thursday, Intel's shares surged by as much as 18%, marking its largest single-day gain since March 2020.

This decision has also garnered widespread attention on Wall Street. Tan's extensive experience and outstanding achievements in the semiconductor industry have raised market expectations for his leadership capabilities. However, intel continues to face significant challenges, and the market remains cautious about its future performance.

Notably, while the announcement of Tan's appointment as the new CEO has boosted the company's shares more than 16% in early trading, it also squeezed stock prices of some other semiconductor companies, including competitors amd and nvidia.

John Vinh, an analyst at KeyBanc Capital Markets, expressed encouragement over Tan's appointment. He noted that during Tan's 12-year tenure at Cadence Design Systems (CDNS), he created significant shareholder value and, as a member of Intel's board, has a deep understanding of Intel's business.

Vinh stated, "Given the multitude of challenges that Intel currently faces, we are maintaining our 'sector weight' rating, and look forward to hearing more about Mr. Tan's strategy for turning Intel around." He maintained his rating on Intel and set a price target of $20.

Joseph Moore, an analyst at Morgan Stanley, shared a similar view. He praised Tan for having "very strong" industry knowledge and a high reputation in the field. Although Tan's experience at Intel and similar companies is limited, Moore believes his appointment will bring new energy and transformation to the company. The analyst also maintained his rating on Intel with a price target of $25.

Moore wrote, "If the company maintains a priority on world class foundry development – which from his after hours comments appears to be the case- we would particularly like to see the company acquire more experience in that area. Our sense is that this all makes divestitures of foundry or product less likely, given the commitment to both in his comments."

However, he points out the hurdles remain significant, as delays in the server roadmap, the lack of near-term AI products, a competitive client CPU market, and the foundry business losing over $10 billion in the past 12 months all pose challenges to near-term growth and profitability, with no quick fixes. However, swift and decisive action regarding CEO decision-making is a good start.

Following Tan's appointment, Vivek Arya, an analyst at Bank of America, upgraded Intel's rating to "Neutral" and stated that Intel now has a "better chance of turning things around."

He believes that under Tan's leadership, Intel has a greater opportunity to restructure and reverse its fortunes. Intel's strong influence and brand position in the enterprise PC/server CPU market increase the likelihood of success.