Intel Corp. (INTC, Financials) announced that co-CEOs David Zinsner and Michelle Johnston Holthaus would succeed Pat Gelsinger, who will retire on Dec. 1. Gelsinger also left Intel's board. INTC stock is up 4% in Monday morning trading following the news.
Holthaus will also assume the newly established Intel Products CEO post. Frank Yeary is designated temporary executive chair.
Intel is trying to become more competitive in semiconductor production and negotiate continuous obstacles, including pressure on its foundry operations, hence the leadership transition comes as natural. Previously running Intel's Client Computing Group, Holthaus will concentrate on centralizing resources for the product group. Joined Intel in 2022 Zinsner, a former executive vice president and CFO of Micron Technology (MU, Financials).
KeyBanc Capital Markets analysts said that the action would show Intel's readiness to sell its foundry business, a prospect considered positive by some investors. Analyzers also pointed out the difficulties in selecting a leader suited to handle Intel's wide-ranging problems.
Intel has had challenges growing its foundry operations to compete with Taiwan Semiconductor Manufacturing Company Limited (TSM, Financials) and understood pressure from Advanced Micro Devices Inc. (AMD, Financials) and NVIDIA Corp. (NVDA, Financials) in artificial intelligence. Aiming to save $10 billion in expenses and simplify operations, the business announced in August a 15% personnel cut.
Intel reported a net loss of $0.46 per share in the most recent quarter as income dropped 6.2% year over year to $13.28 billion. Foundry income fell 8% to $4.4 billion during the same time frame. Part of its cost-cutting initiatives, the corporation also noted a $2.8 billion restructuring expense.
Under the CHIPs Act, Intel this week earned a $7.86 billion grant, a drop from an earlier $8.5 billion allocation to improve manufacturing headquartered in the United States.
Intel has not made any further strategic announcements after the CEO shift.
