After enduring years of stock market underperformance, Intel (INTC) has recently demonstrated surprising resilience amidst broader market volatility. This relative stability coincides with a significant overhaul in the company's leadership and governance structure, including a new CEO and a revamped board of directors strategically focused on deepening semiconductor industry expertise, signaling a concerted effort to regain momentum.
The contrast with recent history is stark. Under former CEO Pat Gelsinger, whose tenure concluded at the end of November 2024 after nearly four years, Intel's stock value declined by a staggering 55%. During this same timeframe, rival chipmaker Nvidia (NVDA) saw exponential growth, achieving triple-digit annual percentage gains and, in a move underscoring the shift in industry dominance, replaced Intel in the Dow Jones Industrial Average in late 2024.
However, the narrative has shifted somewhat in early 2025. As of mid-April, Intel shares are down less than 2% year-to-date. While modest, this performance looks favorable compared to Nvidia's 17% drop and a 9% decline in the S&P 500 index during the same period. This suggests that Intel's stock, having already suffered steep losses, may have become somewhat insulated from current market headwinds, possibly linked to ongoing global trade uncertainties and economic pressures. It appears many investors who intended to sell had already done so.
A key element in Intel's strategy to rebuild is fresh leadership. Following Gelsinger's resignation on December 1, 2024, "restoring investor confidence" was explicitly stated as a major goal by Frank Yeary, Intel's independent chair who served as interim executive chair during the CEO search. The appointment of new CEO Lip-Bu Tan was accompanied by a notable signal of commitment: Tan purchased $25 million worth of Intel shares in early March 2025, fulfilling an obligation of his new role. Significantly, Tan acquired these shares directly from Intel, not on the open market, a move potentially seen by investors as a stronger vote of confidence than his predecessor's practice of buying stock during price dips.
Simultaneously, Intel initiated a significant restructuring of its board to enhance its industry-specific knowledge. Within days of Gelsinger’s departure, Yeary announced the immediate addition of two highly respected semiconductor veterans: Eric Meurice, the former president, CEO, and chairman of chipmaking-equipment giant ASML Holding, and Steve Sanghi, chairman and interim CEO of Microchip Technology. Yeary praised them as "successful CEOs with proven track records." With Tan also rejoining the board (having previously stepped down in August 2024), the board temporarily grew to 14 members.
This expansion was short-lived. In late March 2025, Intel revealed that three directors – Omar Ishrak, Tsu-Jae King Liu, and Risa Lavizzo-Mourey – would retire from the board and not stand for reelection at the company's annual meeting scheduled for May 6, 2025. While acknowledged by Yeary for their valuable service and expertise, these departing directors lack top-level executive experience within the semiconductor manufacturing sector. Ishrak is the former CEO of Medtronic (medical tech), Liu is a prominent engineering academic and dean at UC Berkeley, and Lavizzo-Mourey is an expert in health policy and former CEO of the Robert Wood Johnson Foundation.
In an emailed statement, Intel emphasized its focus on board composition: “The Board prioritizes regular refreshment to ensure it has the necessary skills and experience to oversee our business and create long-term shareholder value... Eric and Steve are highly respected leaders in the semiconductor industry whose deep technical and executive experience make them great additions.”
This deliberate shift towards directors with deep semiconductor backgrounds marks a clear strategic pivot. With the May 6th meeting set to formalize the new board structure, analysts suggest CEO Tan has a crucial window to enact change and positively influence investor sentiment. Expectations are rising that significant strategic announcements could follow soon after the meeting.
Intel currently stands at a critical juncture. While its stock performance offers a glimmer of stability, the path ahead requires navigating intense competition. With a new CEO demonstrating significant personal investment and a board fortified with targeted industry experience, Intel is strategically positioning itself for a potential turnaround, aiming to rebuild trust and reclaim its prominence in the dynamic semiconductor landscape.