Intel's (INTC) appointment of Lip-Bu Tan as its new chief executive officer starting March 18 is seen as a positive sign, given his extensive industry relationships, venture capital background and experience on the company's board, BofA Securities said in a note Wednesday.

"We believe Intel has a greater opportunity to restructure/turn things around under his leadership, with Intel's strong incumbency/brand position in enterprise PC/server CPUs increasing the potential for success," the firm said.

BofA said manufacturing remains one of the company's most challenging areas and a potential joint venture with Taiwan Semiconductor Manufacturing (TSM) to operate Intel's foundry division might further support turnaround efforts if confirmed.

Details of the collaboration that could involve fabless companies like Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Qualcomm (QCOM) are still unconfirmed and Taiwan Semiconductor's separate investments indicate a preference for operating independently, the firm said.

BofA upgraded its rating on Intel's stock to neutral from underperform and raised its price target to $25 from $19.

Shares of Intel were up 16% in recent trading.

Price: 24.00, Change: +3.32, Percent Change: +16.05