These 2 Chip Stocks Are Set to Capitalize on Intel's CEO Crisis

CEO Transition and Market Reaction - Intel's CEO Pat Gelsinger retired effective Dec 1, with CFO David Zinsner and CEO of Intel Products Michelle Johnston Holthaus appointed as interim co-CEOs [1] - The abrupt nature of the announcement, without a customary advisory role for Gelsinger, suggests he was pushed out [2] - Intel stock initially jumped on the news but fell 6.1% on Tuesday, with Wall Street analysts skeptical about the decision's near-term impact [3] Impact on Intel's Foundry Business - Intel's foundry business, a key part of Gelsinger's strategy, has racked up billions in losses and may face scaling back or a spin-off under new leadership [5][6] - Intel recently pushed back the timeline for completing new plants until after 2030, slowing its foundry ambitions [7] - Gelsinger's removal reduces the threat to TSMC, which remains the dominant player in advanced chip manufacturing [5][7] Competitive Landscape - TSMC, the world's largest contract chip manufacturer, handles over half of chip production for fabless companies and 90% of advanced chips [5] - Arm Holdings, a competitor in CPU architecture, is gaining market share in data centers due to its power efficiency, particularly for AI applications [8][9] - Intel's leadership gap could impact its competitiveness, speed to market, and ability to recruit talent, potentially benefiting Arm [10][12] Product Business and Foundry Dependency - Intel's products business depends on its foundry for manufacturing, and a spin-off could disrupt this relationship [11] - The upheaval at Intel may lead prospective customers to favor Arm, which appears more reliable by comparison [11]