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Struggling chip giant Intel (INTC) could have a shot at future glory days.

But it surely’s not guaranteed, and it won’t be for some time, one analyst said.

“I believe Intel has a significantly better shot of remaining viable on this industry [under new CEO Lip-Bu Tan],” Bank of America semiconductor analyst Vivek Arya said on Yahoo Finance’s Opening Bid podcast (see video above or listen below). “It is not going to be easy — competition just isn’t sitting still. Their competition, remember, is Nvidia. It’s AMD. It’s Arm Holdings. It is a Taiwan Semiconductor. It’s Broadcom. It’s Marvell.”

Intel announced Tan as its next CEO on March 12. He officially began last week.

Tan was the CEO of Cadence Design Systems (CDNS) from 2009 to 2021. After serving on Intel’s board for 2 years, he left in August 2024 following clashes with now-ousted CEO Pat Gelsinger on how you can position the business, a source told me.

The source said Tan was interviewed for the CEO role of Intel similtaneously Gelsinger. Gelsinger ultimately got the gig in 2021 but needed to play nice by agreeing to place Tan on the board. Tan steadily pushed for a greater artificial intelligence technique to tackle Nvidia (NVDA) and faster decision making on the notoriously bureaucratic Intel.

Listen: What Bill Gates thinks about Intel

The tech industry veteran has quite a few challenges on his hands at the enduring American tech player.

Gelsinger led aggressive efforts to show across the troubled US chipmaker for greater than three years. He slashed 1000’s of jobs, improved costs, secured CHIPS Act funding, built chip foundries, and promised fast AI chips that would compete with Nvidia and AMD (AMD).

He was fired in early December amid missed targets and a money drain on the foundry business.

Intel’s fourth quarter sales fell 7% 12 months over 12 months to $14.3 billion, and net earnings plunged 76%. The corporate forecasts it is going to only break even on the profit line this 12 months.

Tan must stabilize the business, likely through more cost cuts and recent leadership, and regain trust with Wall Street.

Arya thinks Tan could search for partners to fund the expensive production of chips, a possible cash-saving strategy some on the Street have pushed Intel to think about. He upgraded his rating on Intel’s stock to Neutral following Tan’s appointment.

The stock is simply too low-cost based on Intel’s mental property, Arya added.

“So all we’re saying is that the one value on Intel [right now] is good the bricks and mortar of its fabs, right? Which is clearly not the case,” Arya explained. “Now, should it really be valued as one in every of these growth corporations? Obviously not. So I believe what we were attempting to say is that under his leadership, Intel has a greater probability of adding [value] … and getting recognized for its IP value because [Tan] comes from that background.”