Intel Corporation (NASDAQ: INTC) announced on Monday the retirement of its CEO, Pat Gelsinger, after a career spanning more than four decades with the company. Gelsinger, who returned to Intel in 2021 to lead an ambitious turnaround effort, officially stepped down on 1 December 2024. The company has named Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus as interim co-CEOs, while the board conducts a search for a permanent replacement.
Leadership transition
Michelle Johnston Holthaus has also been appointed to the newly created role of CEO of Intel Products, overseeing key business groups such as Client Computing, Data Center and AI, and Network and Edge. Frank Yeary, the independent chair of Intel’s board, will serve as interim executive chair during the leadership transition.
The new leadership team is tasked with simplifying Intel’s product portfolio, advancing its foundry capabilities, and improving operational efficiency. “With Dave and MJ’s leadership, we will act urgently on these priorities to create a leaner, more agile Intel,” Yeary added.
Market reaction
The announcement of Gelsinger’s retirement was initially met with optimism, with Intel shares rising over 5% in early trading on Monday. However, they have since erased gains, falling to where they closed on Friday.
Gelsinger’s tenure was marked by ambitious goals to reclaim Intel’s manufacturing leadership and counter growing competition from rivals such as Nvidia and AMD. In contrast with some of its rivals, Intel both designs and manufactures its chips.
Intel remains a key player in the semiconductor industry, supported by US government funding through the CHIPS Act.
However, the company’s market position has weakened. It missed the AI-driven demand surge that propelled Nvidia to an over $3 trillion market valuation. Intel’s stock has declined by more than 60% since Gelsinger took over, contrasting with Nvidia’s 820% surge during the same period.