Intel's New CEO Change Unlikely To Help Gain Traction Versus Taiwan Semi And Nvidia: Analysts

Core Viewpoint - Intel Corp is undergoing a leadership change after the expulsion of CEO Pat Gelsinger due to unsatisfactory turnaround efforts, with a search committee formed to find a successor [1][3]. Company Performance - Intel has struggled to gain market share against competitors like Nvidia and Taiwan Semiconductor, with its stock down over 52% year-to-date [2]. - Analysts have noted that Intel's performance under Gelsinger was worse than that of the previous four CEOs, with no outperformance against the SOX index [6]. Leadership Transition - The board is considering several candidates for the CEO position, including former board member Lip-Bu Tan, who previously clashed with Gelsinger over the turnaround plan [1][3]. - Interim co-CEOs David Zinsner and Michelle Johnston Holthaus have been appointed while the search for a new CEO continues [9]. Analyst Ratings and Recommendations - Truist Securities analyst William Stein reiterated a Hold rating with a price target of $26, suggesting that significant changes made by Gelsinger did not yield positive results [6]. - Benchmark analyst Cody Acree also maintained a Hold rating, expressing skepticism about Intel's ability to manage multiple objectives simultaneously, including re-establishing technology leadership and developing a competitive GPU [10]. Strategic Considerations - Analysts have suggested potential strategies for Intel, including selling parts of the company, splitting the manufacturing and products business, and aggressive asset monetization [8]. - The potential separation of Intel's Products and Foundry business is seen as a way to calm investor concerns, although it may result in forfeiting$7.8 billion in CHIPS Act funding [12]. Current Stock Performance - As of the latest check, Intel's stock is down 5.62%, trading at $22.59 [13].