$Intel (INTC.US)$ The appointment of Chen Liwu as the new CEO has attracted widespread attention on Wall Street and injected a dose of confidence into the future of this chip manufacturer. Chen Liwu's extensive experience and outstanding achievements in the Semiconductors Industry have created high expectations for his leadership. However, the challenges Intel currently faces remain severe, and the market holds a cautious view of its future performance.

After the announcement of Chen Liwu being appointed as the new CEO, Intel shares rose more than 15%, however, competitors including... $Advanced Micro Devices (AMD.US)$ and$NVIDIA (NVDA.US)$Other companies in the Semiconductors sector experienced sales pressure.

In this regard, KeyBanc Capital Markets Analyst John Vinh expressed encouragement regarding Chen Liwu's appointment. He pointed out that during Chen Liwu's 12-year tenure at Cadence Design Systems (CDNS), he created substantial shareholder value and has an in-depth understanding of Intel’s Business as a member of Intel's Board of Directors.

Vinh stated, "Although Intel currently faces numerous challenges, we are encouraged by Chen Liwu’s appointment. We look forward to hearing more about his Global Strategy to turn around Intel's situation." He maintains an "Industry Weight" rating on Intel and sets the Target Price at $20.

Morgan Stanley analyst Joseph Moore shares a similar view. He praised Chen Liwu for having "very strong" industry knowledge and a high reputation in the industry. Despite Chen Liwu's limited experience with companies like Intel, Moore believes that his appointment will bring new energy and transformation to the company. The analyst maintains a "Hold" rating on Intel and a Target Price of $25.

He wrote, "If the company continues to prioritize the development of world-class foundries, we especially hope to see the company gain more experience in this area. Our feeling is that given Chen Liwu’s commitments in comments regarding these two aspects, this reduces the likelihood of divesting foundries or products. However, there are still significant obstacles, such as delays in the Server roadmap, a lack of recent AI products, intense competition in the client CPU market, and foundry losses exceeding $10 billion in the past 12 months, which pose challenges for the company in terms of near-term growth and profitability without quick solutions. However, decisive and swift action surrounding the CEO decision is a good start."

After Chen Liwu was appointed, Bank of America Analyst Vivek Arya upgraded Intel's rating to 'Neutral', stating that Intel currently faces 'a better opportunity to turn a profit'.

He believes that under Chen Liwu's leadership, Intel has a greater chance of restructuring and turning the situation around. Intel's strong influence and brand position in the enterprise PC/Server CPU sector increases the likelihood of success.

Arya wrote: 'The improvement in market conditions may also pave the way for Intel to gradually divest its Altera and Autos Assets, thereby reducing the leverage on its balance sheet. Intel's substantial transformation is still underway, but if executed properly, it could create headwinds for peers like AMD, as AMD's market share in the PC/Server CPU sector has been steadily increasing so far.'

Editor/danial