Intel Corporation, the struggling U.S. chipmaker, saw its shares climb 2.7% on Tuesday, building on a nearly 7% surge on Monday.

The rally comes as Intel’s newly appointed CEO, Lip-Bu Tan, officially steps into his role, replacing Pat Gelsinger, who retired late last year after failing to revive the company’s fortunes.

Tan, the former CEO of Cadence Design Systems (CDNS), takes the helm at a critical time for Intel, which has lost nearly 40% of its stock value over the past 12 months.

Under Gelsinger’s leadership, Intel struggled to keep pace with global competitors like Taiwan Semiconductor Manufacturing Company (NYSE:TSM), particularly in the fast-growing artificial intelligence (AI) sector.

Now, Tan is reportedly eyeing “significant changes” to turn the company around, according to a Reuters report published Monday.

Sources indicate that Tan is considering a sweeping overhaul of Intel’s chip manufacturing processes and AI strategies.

Among the potential moves are cuts to middle management and a revamp of the company’s contract manufacturing business, aimed at streamlining operations and boosting competitiveness.

Intel’s board announced Tan’s appointment last Wednesday, a decision that has been met with enthusiasm from analysts and investors alike, given his successful track record at Cadence, a semiconductor software firm with ties to Intel.