No one is expecting a miracle overnight, but investors like Intel’s CEO announcement

After a dreadful 2024, Intel shares are suddenly the best performing semiconductor play so far this year.

After a dreadful performance in 2024, Intel Corp.’s stock is suddenly the best performing chip stock of the year, leading the Philadelphia Semiconductor Index for 2025 as investors look for upside potential after souring on most chip stocks.

Intel’s stock is up about 20% this year, a performance that ranks first among components of the Philadelphia Semiconductor Index (SOX) in a huge reversal from 2024, when it was the worst performer in the index. Intel shares tumbled 60% last year.

Shares of Intel are also up 16.52% last week, making them the best-performer in the S&P 500, according to Dow Jones Market Data.

Since the embattled chip giant announced Wednesday afternoon that former Intel board member Lip-Bu Tan would be returning as its new chief executive, shares have surged about 13%. And that’s in spite of the view on Wall Street that Tan’s task is an overwhelming one, which will not result in a fast turnaround.

Intel’s shares made a steep climb in late February, amid hopes that the Trump administration would broker some sort of deal and view Intel as the greatest chance for a renaissance of U.S. semiconductor manufacturing. But the shares went on a roller-coaster ride after many rumored tie-ups were reported but failed to materialize.

Over the past few years, Intel lost its technology lead to its biggest rival, Taiwan Semiconductor Manufacturing Co. Ltd., now the biggest chip maker in the world. In early December,Intel’s board forced out CEO Pat Gelsinger,as it apparently became impatient with his costly plans to return Intel to its manufacturing prowess.

In contrast, the once-hot Nvidia Corp. and Broadcom Inc. have seen their stocks fall in the face of investors’ fears that artificial-intelligence computing costs will decline, after the DeepSeek market rout in late January. Nvidia also saw lower profit margins in its most recent fiscal fourth quarter due to its Blackwell product transition. Nvidia shares are down over 9% this year, and Broadcom shares are off nearly 16%.

Wall Street is clearly relieved that Intel has hired who many believe is the perfect CEO at the moment — someone who meets the necessary engineering criteria but also is expected to take a tougher look at getting rid of its cumbersome processes and huge bureaucracy.

“Lip-Bu brings immediate credibility to Intel for customers, partners, and investors,” Bernstein Research analyst Stacy Rasgon said in a note Thursday that summed up Wall Street’s view of Intel’s new CEO. “He is an icon of the industry with experience spanning decades across both public and private companies.”

No one is expecting a miracle overnight. But investors are hopeful that the news on the next-generation manufacturing process, called 18a, will prove more enticing and attract new customers to Intel’s manufacturing business, which is expected to lose money again this year.

Shares of Intel closed higher 1.5% at $24.05 on Friday.