Intel ’s stock is soaring after Lip-Bu Tan, a respected veteran in the semiconductor industry, was chosen as its new CEO. The appointment comes three months after the chipmaker, which falling behind in the A.I. race pushed out former head Pat Gelsinger.

With a permanent CEO, Intel now has some stability. But turning around the design and manufacturing businesses won’t be easy.

Tan succeeds interim co-CEOs David Zinsner and Michelle Johnston Holthaus. He’ll also rejoin the Intel board of directors after stepping down from the board in August 2024, Intel said. Zinsner will remain Intel’s CFO, while Johnston Holthaus will remain CEO of the company’s Intel Products division.

Intel stock jumped more than 16% after announcing that tech executive and former board member Lip-Bu Tan will be the company’s new CEO.

Intel has named tech veteran Lip-Bu Tan the company’s next chief executive officer, the company said Wednesday. He will take over on March 18, Intel said. Tan will succeed Michelle Johnston Holthaus and David Zinsner,

Intel has appointed Lip-Bu Tan as its new CEO amidst the company's turnaround effort and reports that TSMC is looking to run its manufacturing business.