With Pat Gelsinger now out, it remains to be seen who chipmaker Intel (INTC) will pick to replace him. With the job currently being done by two people, and Gelsinger receiving a fat payday to walk away, replacing the former CEO is likely an urgent matter. Intel’s shares fell nearly 6% in heavy trading.
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A regulatory report reveals that Gelsinger will get $12 million from Intel as a payout following his abrupt departure. The $12 million is comprised of 18 months of base salary, which is $1.9 million, and a payment of 1.5 times his target bonus of $3.4 million. Then there is the matter of his annual bonus, which he qualifies for since he made it 11 months without getting fired or quitting, and that brings the total up to $12 million.
Some analysts are calling on Intel to promote from within to take over the top job. However, some rumors have emerged, including a note to Mark Liu, former CEO of Taiwan Semiconductor Manufacturing Co. (TSM). Other potential hits include former Advanced Micro Devices (AMD) executive Victor Peng. And of course there is the matter of the current co-CEOs, David Zinsner and Michelle Johnston (MJ) Holthaus.
Battlemage Formal Announcement
Separately, after weeks of teasers, leaks, and rumors, the Battlemage graphics card is officially a thing at Intel. The B570 will retail for $219, while the B580 will run $249. Intel’s internal benchmarking even noted that the B580 will be able to match—and even exceed—the RTX 4060 from Nvidia (NVDA) as well as the RX 7600 from AMD.
There are some caveats. For instance, claims that the B580 will outperform the RTX 4060 depend on the B580 being paired with the Core i9-14900K processor.
Is Intel a Buy, Hold or Sell?
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 45.99% loss in its share price over the past year, the average INTC price target of $24.40 implies 7.75% upside potential.
