Intel split ‘more likely, but not less difficult’ after CEO exit, says BofA

After Intel (INTC) announced the “unexpected” retirement of CEO Pat Gelsinger, BofA said the transition “does not come as a complete surprise” given that Gelsinger’s “IDM 2.0” strategy hasn’t yielded much fruit to date. The firm now sees a greater possibility that Intel considers separating its Products and Foundry arms, which the firm argues “would grant both businesses their much-needed operational and financial independence,” but also highlights that there remain key hurdles to a full separation and that both businesses are undergoing their own strategic, structural, financial, and competitive issues, with “no near term solution in sight.” The CEO change could provide a near-term boost to the stock, adds the firm, but it maintains an Underperform rating and $21 price target on Intel shares.