Intel (INTC, Financial) announced that its CEO Pat Gelsinger has stepped down after three years in the embattled CEO's return to the company. Frustration with Intel's fumbling to get back in the semiconductor innovation and AI technology leadership game was a key claim for the board. Gelsinger, who'd spent the bulk of his career at Intel and was lured back to the company just last year to revitalize its lagging fortunes, struggled with execution and strategy alignment.
As Gelsinger turned Intel around, he set his sights on restoring the company's supremacy by stimulating domestic manufacturing production and drawing subsidies such as the $7.86 billion from the U.S. government under the CHIPS Act. However, competitors, including Nvidia (NVDA, Financial) and Taiwan Semiconductor Manufacturing Company (TSM, Financial), kept gaining on Intel in key markets such as AI chip development. However, shares dipped 4% after the announcement of Gelsinger's departure, a year-to-date decline of more than 50%.
Intel named interim co-CEOs David Zinsner and Michelle Holthaus in his exit while the search for a replacement continues. The leadership change comes as Intel desperately tries to win back investor trust and keep up in an evolving semiconductor world. As the company works to recoup ground, analysts are watching to see how it uses its resources and rejiggers its strategic roadmap.
