We have known for some time now that chip stock Intel (INTC) is in the market for a new CEO. Just one, though, as opposed to the two it currently has. But the bad news, reports note, is that there are no clear standout candidates emerging just yet. This latest indecision did little to sour investors, though, and Intel shares notched up fractionally in Wednesday afternoon’s trading.
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While there is still quite a bit of word circling around that Intel may end up getting bought out—which might well make Intel’s own hunt for a CEO somewhat moot if a new buyer decides to install one—the move to completely replace Pat Gelsinger is not exactly going well. There is a lot riding on this new CEO as well; Intel has a lot of strategic missteps to address, and a long descent to come back from.
Though interestingly, some think that the CEO may not have been all that responsible for Intel’s losses here. William Lazonic of the Institute of New Economic Thinking suggested that the board of directors should have been on the chopping block, not Gelsinger. But the board has been attempting to turn things around as well, offering two posts to “semiconductor experts” in a bid to turn things around. In fact, nine out of 11 members of Intel’s board, before the new additions, did not have experience in the semiconductor industry, the report noted.
Nova Lake Test Chips Appear
Meanwhile, as part of the ongoing product development cycle, word from WCCFTech says that Intel has a new chip, known as Nova Lake. Nova Lake test chips have briefly been spotted, the report noted, and this suggests “a smooth development cycle,” which is good news for Intel.
Nova Lake is said to be the next “mainstream consumer CPU,” which Intel will need to maintain its primacy over its various competitors, particularly in that mainstream PC market that Intel has controlled for so long. Nova Lake may actually be out this year, as it is slated for arrival “shortly after” Panther Lake’s appearance in the market in the second half of this year.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 21 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 54.65% loss in its share price over the past year, the average INTC price target of $24.42 per share implies 11.28% upside potential.
