Intel shares slide as Gelsinger exit leaves chipmaker without a 'quick fix'

Core Insights - Intel's shares fell over 6% following the announcement of CEO Pat Gelsinger's ouster, marking a significant decline in stock value, which has dropped more than 50% this year [1][4] - The company appointed CFO David Zinsner and Intel products CEO MJ Holthaus as interim co-CEOs while searching for a permanent successor [2] - Analysts express skepticism regarding the potential for a single leader to revitalize Intel, indicating that Gelsinger's departure may not resolve the company's ongoing challenges [3] Financial Performance - Intel's revenue decreased by 6% in the latest period, with year-over-year declines in nine of the past eleven quarters [4] - The company experienced a dramatic 26% drop in stock value following its second-quarter earnings report in August, the steepest decline in 50 years [7] Competitive Landscape - Intel has lost market share in its core PC and data center business to competitors like Advanced Micro Devices, coinciding with Nvidia's rise to a market cap exceeding $3 trillion [4][5] - The shift towards becoming a foundry for manufacturing processors for other chipmakers has been costly, with significant margin shrinkage reported [5][6] Strategic Changes - Intel is undergoing a $10 billion cost-reduction plan, which includes cutting 15% of its workforce [7] - Analysts anticipate that further aggressive cost-cutting measures and expedited sales of non-core assets may be implemented by Gelsinger's successor, although these actions may not address the fundamental issues with the foundry business [8]