Intel’s Transformational Leader, Pat Gelsinger, Bids Farewell After Prolonged Stewardship as Chip Industry Pioneer Pat Gelsinger, the current CEO of Intel, has stepped down from his position after a long tenure at the company. He was replaced by David Zinsner and Michelle Johnston Holthaus as interim co-CEOs. Gelsinger first joined Intel as a teenager in 1979 and went on to become its first chief technology officer at the turn of the century before leaving Intel in 2009. After taking a senior position at EMC and serving as the CEO of VMware, Gelsinger returned to Intel in 2021 to take over from then-CEO Bob Swan. Gelsinger’s turnaround plan centered on Intel becoming a major player in contract manufacturing for others, a business model called a “foundry” in the chip industry. However, despite ambitions to regain Intel’s leadership in the semiconductor industry, the company has failed to catch up with competitors and has seen its share price plunge by about 50 percent in 2024 alone. Analysts have criticized Gelsinger’s plan, stating that “you need leading-edge products, innovation, and execution” to succeed in the chip industry. Hans Mosesmann, an analyst at Rosenblatt Securities, said that Intel did not see any of these during Gelsinger’s reign.
Pat Gelsinger, the current CEO of Intel, has stepped down from his position after a long tenure at the company. He was replaced by David Zinsner and Michelle Johnston Holthaus as interim co-CEOs.
Gelsinger first joined Intel as a teenager in 1979 and went on to become its first chief technology officer at the turn of the century before leaving Intel in 2009. After taking a senior position at EMC and serving as the CEO of VMware, Gelsinger returned to Intel in 2021 to take over from then-CEO Bob Swan.
Gelsinger’s turnaround plan centered on Intel becoming a major player in contract manufacturing for others, a business model called a “foundry” in the chip industry. However, despite ambitions to regain Intel’s leadership in the semiconductor industry, the company has failed to catch up with competitors and has seen its share price plunge by about 50 percent in 2024 alone.
Analysts have criticized Gelsinger’s plan, stating that “you need leading-edge products, innovation, and execution” to succeed in the chip industry. Hans Mosesmann, an analyst at Rosenblatt Securities, said that Intel did not see any of these during Gelsinger’s reign.
The board lost confidence in Gelsinger’s turnaround plan and felt that progress was not fast enough. The board told Gelsinger he could retire or be removed, and he chose to step down.
David Zinsner and Michelle Johnston Holthaus will act as co-CEOs while the company’s board works to find a permanent successor. Zinsner is currently the company’s executive vice president and chief financial officer, while Holthaus has been appointed to the newly created position of head of Intel Products.
Shares of the company fell 0.5%. The stock has lost more than half of its value this year, and it was replaced last month by Nvidia on the blue-chip Dow Jones Industrial Average index. Rival Advanced Micro Devices climbed 3.6%, as the PHLX Semiconductor Index rose 2.6%.
Gelsinger announced his turnaround plan in July 2021.
The company has seen its share price plunge by about 50 percent in 2024 alone.
Gelsinger stepped down as CEO on December 1, 2024.
