Why Intel Stock Fell 17% in December

Company Performance - Intel's stock finished the month down 17% following the CEO announcement and the Federal Reserve's rate-cut forecast adjustment [2] - The stock plunged after the CEO announcement and remained down, with further declines after the Federal Reserve's decision [2] - Shares have been flat to start January, with negative media attention and market share losses contributing to the stagnation [6] Leadership Changes - Former CEO Pat Gelsinger's surprise retirement highlighted the company's disarray and challenges in the chip sector [1] - Intel named two interim co-CEOs, CFO David Zinsner and Michelle Johnston Holthaus, leaving the company without a permanent leader during a critical transition period [4] - The lack of a permanent CEO replacement has left the company without leverage in executive negotiations, making the position difficult to fill [5] Strategic Challenges - Intel is in the midst of a massive transition, including a 15% workforce reduction and a pivot to a new foundry model [4] - The company's transition to the foundry model, which opens its factories to outside customers, is proving to be a significant challenge [4] - Intel's struggles with its business model, floundering stock price, and leadership vacuum are making it difficult to attract a new CEO [5] Market Position - Intel is losing market share in multiple areas and has fallen behind AMD in data center revenue [6] - The company's latest AI PC chips released at CES in Las Vegas failed to capture investor attention, with Nvidia dominating the spotlight [7] Future Outlook - Intel added two new board members and rumors suggest a potential full spin-off of the foundry business [6] - The company's problems are expected to worsen before they improve, with a gifted leader potentially needed to turn the situation around [7]