[Intel's CEO Pat Gelsinger has resigned] Leadership Transition: The unexpected resignation of CEO Pat Gelsinger after a difficult tenure highlights the instability at the top of the company.

Intel's CEO Pat Gelsinger has resigned after a challenging tenure, marking a significant shift for the once-dominant chipmaker. Gelsinger's departure comes as Intel struggles to keep pace with rivals in the rapidly evolving AI chip market.

## Gelsinger's Tenure and Intel's Challenges

Intel CEO Pat Gelsinger delivers a speech at Taipei Nangang Exhibition Center during Computex 2024, in Taipei on June 4, 2024.

Gelsinger returned to Intel as CEO in February 2021, tasked with revitalizing the company amid fierce competition and production delays. Despite his efforts, Intel's prospects continued to decline:

- **Stock Performance**: Intel's stock plunged 61% during Gelsinger's tenure.

- **AI Boom**: The company missed the AI boom, falling behind competitors like Nvidia.

- **Cost-Cutting Measures**: In August, Intel announced a 15% staff layoff as part of a plan to cut $10 billion in costs.

## Market Shift and Nvidia's Rise

The AI revolution, sparked by innovations like ChatGPT, has dramatically reshaped the chip industry:

- **Nvidia's Dominance**: Nvidia emerged as the dominant player in AI chips, with its market value soaring to $3.4 trillion—33 times larger than Intel's $104 billion.

- **Stock Surge**: Nvidia's stock surged nearly 720% over the past two years, making it one of the most valuable public companies.

## Leadership Transition

Intel has appointed interim co-CEOs as it searches for a permanent replacement:

- **New Leadership**: David Zinsner (CFO) and Michelle Johnston Holthaus (GM of Client Computing) will serve as interim co-CEOs.

- **New Role for Holthaus**: Holthaus has also been named CEO of Intel Products, overseeing data center and AI efforts.

- **Interim Executive Chair**: Frank Yeary, Intel's independent board chair, will take on the role of interim executive chair.

## Future Outlook and Challenges

Intel faces several challenges as it seeks to regain its competitive edge:

- **Business Model Transition**: The company is working to transition to a foundry model, manufacturing chips for competitors.

- **Manufacturing Delays**: There have been delays in expanding US manufacturing capabilities.

- **Reduced CHIPS Act Grant**: The grant from the Biden administration was reduced from $8.5 billion to $7.86 billion due to timeline adjustments.

As Intel navigates this critical period, the company aims to simplify its product portfolio, advance manufacturing capabilities, and optimize expenses to create a leaner, more agile organization.

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