Intel CEO Pat Gelsinger's retirement was prompted by the board's lack of satisfaction with his efforts to steer the company towards a competitive position against rivals like Nvidia, according to sources familiar with the matter. Following the board's displeasure with Intel's turnaround progress, Gelsinger was given the option to retire or be ousted by the board.
As Gelsinger steps down, David Zinsner and Michelle Johnston Holthaus have been appointed as interim co-CEOs while Intel initiates a search for a new chief executive. Gelsinger's return to Intel in 2021 was accompanied by plans to revitalize the chipmaker's manufacturing dominance, but the anticipated progress failed to materialize as Intel's shares continued to decline significantly throughout the year. With the stock down more than 51% year-to-date, investors have responded positively to Gelsinger's departure, hoping for more aggressive strategic changes under new leadership to help the company regain its competitive edge. Despite Gelsinger's efforts to advance Intel's process roadmap, doubts persist about Intel's ability to independently pursue cutting-edge manufacturing due to its absence from AI development. The departure signifies a shift in strategy that some market analysts have advocated for, emphasizing the need for innovation and execution to drive growth and match the success seen by competitors like Nvidia.