(Updates with the latest stock movement in the first paragraph and headline.)

Intel (INTC) shares were up 8% in recent trading Monday after the company's new Chief Executive Officer Lip-Bu Tan reportedly said he's considering an overhaul of the company.

Tan is considering significant changes to the company's chip manufacturing and AI strategies as part of turnaround efforts, Reuters reported Monday, citing two sources familiar with Tan's thinking.

One of Tan's top priorities is revamping Intel's manufacturing operations to attract external customers more aggressively. He is expected to focus on improving production efficiency to deliver more chips printed on each silicon wafer as the company is moving to volume manufacturing of its in-house chip using the 18A process this year, the report said.

Tan's AI strategy includes expanding beyond server chips into software, robotics, and AI foundation models, while also cutting middle management to improve efficiency.

Additionally, Tan aims to implement an annual release schedule for advanced AI chips, however, sources said that Intel is not expected to introduce a compelling new AI chip architecture at least until 2027.

Intel did not immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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