Chip stock Intel (INTC) just lost its CEO, Pat Gelsinger. But the move does not seem to be sitting well with investors who took the share price down modestly in afternoon trading.
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Intel announced that Gelsinger had retired, effective December 1. Now, Intel will go the interim CEO route, putting CFO David Zinsner and products head MJ Holthaus in the top job. Given all of Intel’s recent cost-cutting, you would think they would want to save money and not hire two CEOs to do the job of the former one, even if it is on a temporary basis.
As to the subject of “did he leave, or was he thrown out,” reports seem to vary. Some reports refer to Gelsinger’s “ouster” after “…a contentious board meeting last week over his perceived failure to respond to Nvidia’s competitive edge and a lack of confidence in Gelsinger’s turnaround plans.” It likely also did not help matters that Intel put a lot into building out factories in the U.S., induced by payouts from the CHIPS Act, only to see those payouts get cut and potentially threatened by the incoming Trump administration.
Battlemage News
In other news, the Battlemage processor got a little more reveal today. Reports say that Intel will show more of the technology shortly, and that Battlemage will likely prove to be the budget-friendly option, even as graphics processing units (GPUs) like Nvidia’s (NVDA) look to be the high-end option.
Intel already released a teaser video on Battlemage, and notes that there will be more information coming out about it soon. The only question will be just how well the official line meshes with the leaks that have already emerged, as Intel looks to take some of its market share back from its competitors.
Is Intel Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 22 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 43.17% loss in its share price over the past year, the average INTC price target of $24.43 implies 2.69% upside potential.
