SANTA CLARA, Calif. - Intel Corporation (NASDAQ: NASDAQ:INTC), a prominent player in the Semiconductors & Semiconductor Equipment industry with a market capitalization of $104 billion, announced today that Pat Gelsinger has retired and stepped down from the board of directors, effective Sunday. Following his departure, Intel has named David Zinsner and Michelle Johnston Holthaus as interim co-chief executive officers. Additionally, Frank Yeary will take on the role of interim executive chair. According to InvestingPro analysis, the company faces near-term profitability challenges, with analysts not anticipating profitability this year.
Gelsinger's retirement concludes over four decades of service at Intel, marked by significant contributions to the company's innovation and manufacturing processes. During his tenure, Gelsinger focused on revitalizing Intel's semiconductor manufacturing and driving innovation across the organization. The company currently maintains revenue of $54.2 billion over the last twelve months, though InvestingPro data shows challenging metrics with negative free cash flow yield and return on invested capital.
The board has initiated a search for a permanent CEO replacement. In the interim, Zinsner and Holthaus will lead the company. Zinsner, who has over 25 years of experience in the semiconductor, manufacturing, and technology industries, joined Intel as executive vice president and chief financial officer in January 2022. Holthaus, with nearly three decades at Intel, has been appointed as the CEO of Intel Products, overseeing the Client Computing Group, Data Center and AI Group, and Network and Edge Group. With 30 analysts recently revising earnings upward for the upcoming period, market watchers maintain close scrutiny of this transition. For detailed analysis and additional insights, investors can access comprehensive Pro Research Reports available on InvestingPro.
Yeary, in his statement, expressed gratitude to Gelsinger for his dedication and outlined the company's commitment to restoring investor confidence by focusing on product leadership and operational efficiency. He emphasized the importance of Intel's product group and the intention to meet customer demands effectively.
Gelsinger reflected on his time at Intel with pride and acknowledged the challenging decisions made to position the company in the current market. He praised the collective efforts of his colleagues throughout his career.
Zinsner and Holthaus have expressed their commitment to advancing Intel's product and process leadership and focusing on driving returns on foundry investments.
This transition comes at a time when Intel is striving to create a leaner, more agile organization, with a focus on simplifying and strengthening its product portfolio, advancing manufacturing and foundry capabilities, and optimizing operating expenses and capital.
The information for this article is based on a press release statement from Intel Corporation.
In other recent news, Citi analysts have expressed a positive outlook for the U.S. semiconductor sector, suggesting that the recent downturn may soon end. This follows a period where consensus estimates fell by 11% during earnings season. The firm anticipates a 9% year-over-year increase in global semiconductor sales in 2025, building on a 17% growth observed in 2024. Citi has given a 'buy' rating to several companies within the sector, including Analog Devices Inc (NASDAQ:ADI)., Advanced Micro Devices (NASDAQ:AMD) Inc., Broadcom (NASDAQ:AVGO) Inc., and others.
In related developments, Texas Instruments (NASDAQ:TXN) reported a 9% sequential revenue increase to $4.2 billion, despite an 8% year-over-year decline. BofA Securities revised its price target for Texas Instruments, reducing it to $215 from $220 while maintaining a Neutral rating.
Meanwhile, Advanced Micro Devices (AMD) made significant market share gains over Intel Corporation (INTC) in the third quarter. Bank of America (BofA) maintained a "Buy" rating on AMD, citing PC and server share gains. However, BofA maintained an "Underperform" rating on Intel, pointing to CPU share losses and limited growth in accelerators.
In other recent news, Lyft (NASDAQ:LYFT), Inc. and Mobileye have joined forces to expedite the commercialization of autonomous vehicle services. Intel Corporation reported a third-quarter revenue of $13.3 billion, a 4% sequential increase, and maintains full-year guidance for Mobileye with $485 million in revenue. Intel's programmable chips division, Altera, also reported a 14% sequential increase in revenue, reaching $412 million for the quarter ending in September.
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