Intel CEO Pat Gelsinger has stepped down after the company’s board lost confidence in his ability to revive the struggling chipmaker, according to Bloomberg. This decision represents a major leadership change for one of the world’s top technology companies.
The move followed a tense board meeting where Gelsinger outlined his strategies to help Intel regain market share and compete with rivals like Nvidia. During the meeting, Gelsinger was reportedly given two choices: announce his retirement or face removal. He opted to retire, ending his tenure with the company.
David Zinsner, Intel’s Chief Financial Officer, and Michelle Johnston Holthaus, Executive Vice President, have been named interim co-CEOs. Frank Yeary, the independent chair of Intel’s board, will serve as interim executive chair while the search for a permanent CEO continues. The leadership team’s immediate focus is to stabilize operations and rebuild investor trust.
Pat Gelsinger, 63, has had a long association with Intel. He began his career with the company as a teenager and spent decades there before leaving in 2009 to lead VMware. He returned in 2021, aiming to restore Intel’s leadership in chip manufacturing. Gelsinger also sought to expand Intel’s business by producing chips for other companies, challenging industry giants like TSMC and Samsung.
During his leadership, Intel launched a plan to expand its manufacturing capabilities, including a major facility in Ohio, supported by funding from the Chips and Science Act. However, challenges such as strong competition, shifting market dynamics, and high costs hindered progress.
Following the announcement of Gelsinger’s departure, Intel’s stock initially rose by 6% but later closed down 0.5% at $23.93. The company’s shares have fallen by 52% this year, reflecting ongoing struggles in the competitive semiconductor industry.
Facing Competition from Nvidia
One of Intel’s key challenges has been competing in the growing AI computing market, where Nvidia has emerged as a dominant force. Nvidia, which transformed its graphics chips into essential tools for AI and data centers, is now the world’s most valuable semiconductor company. Intel’s attempts to establish a foothold in this space have seen limited success.
In a farewell statement, Gelsinger described his departure as “bittersweet.” He expressed pride in his contributions to Intel while acknowledging the difficulties of the past year. He defended the tough decisions made under his leadership as necessary to adapt to market demands.
