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Intel ( INTC ) stock was the biggest gainer on the Nasdaq and one of the biggest on the S&P 500 on Monday, trading up nearly 8% following a report on incoming CEO Lip-Bu Tan's plans to turn around the struggling chipmaker.

Citing two people familiar with Tan's thinking, Reuters reported that he is considering "significant changes" to Intel's manufacturing processes and its artificial intelligence (AI) strategies.

Tan, who is set to take over the top job Tuesday , is replacing Pat Gelsinger, who retired late last year . Analysts and investors have cheered the appointment, which Intel announced last Wednesday.

Tan Weighing Cuts to Middle Management, Report Says

Reuters reported Monday that Tan is weighing cuts to Intel's middle management ranks, and plans to prioritize bringing in new clients for its foundry business. Gelsinger had moved to expand its contract manufacturing business to compete with global players like Taiwan Semiconductor Manufacturing Co. ( TSM ).

The report said analysts and Intel executives told the outlet that bringing on "at least two large customers to produce a high volume of chips" could make the foundry business successful. Intel did not immediately respond to an Investopedia request for comment.

On Friday, the company said in a regulatory filing that Tan would receive an initial base salary of $1 million, and added he has agreed to buy some $25 million in Intel stock in his first month on the job.

Despite Monday's gains, Intel shares are down about 40% from the same time a year ago.

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