Intel CEO Gelsinger's removal raises doubts over turnaround plan
Technology
Intel CEO Gelsinger's removal raises doubts over turnaround plan
(Reuters) - Intel CEO Pat Gelsinger's removal has put an abrupt end to his role in the struggling chipmaker's turnaround efforts, leaving Wall Street with doubts about whether his ambitious revival plan is headed for the chopping block.
A change at the top after a tumultuous year was cheered by investors as Intel shares rose as much as 6% following the news before it closed down 0.5% on Monday.
The shares have slumped more than 50% this year as it lost out on an AI-fueled rally in chipmaking peers. Nvidia has become the second most valuable company in 2024, while Intel's market capitalization dropped below $100 billion for the first time in 30 years.
Intel's market capitalization slumps while other chipmakers rally
Intel struggled under Gelsinger as his plan to increase focus on its money-losing contract manufacturing business hurt cash flow.
Despite the spending spree, it failed to keep up with peers in an AI race and trailed Taiwan's TSMC in chip manufacturing.
The company had also missed out on investment in AI juggernaut OpenAI, while Gelsinger's comments on Taiwan cost Intel its discounted chipmaking deal with TSMC.
