Intel: Examining The Track Records Of The New CEOs In Consideration
Contributor since 2022 / 4531 Followers
Summary:
- The ousting of Patrick Gelsinger as CEO is my opinion an admission of a failed turnaround strategy with Intel missing the AI bet and losing market share in the traditional CPU business.
- Prospective new CEO Lip-Bu Tan has a stellar track record at Cadence Design and intimate knowledge of Intel, with a clear idea of what different things ought to be done.
- Matt Murphy’s successful turnaround at Marvell also makes him a candidate for Intel’s CEO position, but he is committed to Marvell, making his Intel appointment unlikely.
- Lip-Bu Tan is my base case for most likely CEO. I expect his appointment to lead to operating margin improvement driven by cuts to bloated middle management personnel at Intel.
- I expect the new CEO’s compensation to be generous, potentially exceeding Gelsinger’s 2021 package.
andresr
Performance Assessment
My last update on Intel (NASDAQ:INTC) was in late November. I had retained my ‘Sell’ view, which is working out well so far after the recent news of CEO Patrick Gelsinger’s exit from the company:
Analysis
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