Intel Corporation ( INTC ) shares are trading lower on Wednesday, pulling back after recent gains driven by the announcement of its new CEO.

What To Know: Last week, Intel announced Lip-Bu Tan, former Intel board member and CEO of Cadence Design Systems, as its new CEO, succeeding Co-CEOs David Zinser and Michelle Johnston Holthaus.

Tan plans to implement significant changes at Intel, including revamping the company's chip design process, manufacturing operations and AI strategy. In particular, he aims to strengthen Intel's ( INTC ) position in the AI chip production market, along with other financial and administrative reforms.

“I am honored to join Intel as CEO. I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders,” said Tan.

Furthermore, Tan wants to establish an annual AI chip release cycle. He also intends to place greater focus on Intel Foundry, the company's contract chip manufacturing division, which works with clients such as Microsoft.

Intel may be falling amid profit taking after gaining on the appointment of Tan. Additionally, hesitation could stem from Intel’s recent financial struggles and growing competition from other technology giants.

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INTC Price Action: At the time of writing, Intel shares are trading 6.40% lower at $24.26, according to data from Benzinga Pro.

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