Intel Corporation (NASDAQ: INTC) on Monday announced the retirement of CEO Pat Gelsinger, who spent more than 40 years with the company. Gelsinger, who returned to Inter in 2021 to lead an ambitious rebuilding effort, officially resigned on December 1, 2024. The company has named chief financial officer David Zinsner and senior executive Michelle Johnston Holhouse as interim co-CEOs while its board makes its selection. Permanent replacement.

leadership transition

Michelle Johnston Holthaus was also appointed to the newly created role of CEO of Intel Products, overseeing key business groups including Client Computing, Data Center and AI, and Network and Edge. Frank Yeary, independent chairman of Intel’s board of directors, will serve as interim executive chairman during the management transition period.

The new management team is tasked with simplifying Intel’s product portfolio, evolving foundry capabilities and improving operational efficiency. “With Dave and MJ’s leadership, we intend to act with urgency on these priorities and build a leaner, more agile Intel,” Yeary added.

market reaction

Gelsinger’s departure announcement was initially met with optimism, with Intel shares up more than 5% in early trading Monday. However, the gains then disappeared and the stock fell to Friday’s closing price.

Mr. Gelsinger’s tenure was marked by ambitious goals to restore Intel’s manufacturing leadership and counter increasing competition from rivals such as NVIDIA and AMD. In contrast to some rivals, Intel both designs and manufactures its chips.

Intel continues to be a major player in the semiconductor industry thanks to US government funding through the CHIPS Act.

However, the company’s market position is declining. It missed out on the AI-driven demand surge that pushed Nvidia’s market valuation to more than $3 trillion. Intel’s stock price has fallen more than 60% since Mr. Gelsinger took over, compared with an 820% rise for Nvidia over the same period.