Intel CEO Pat Gelsinger is stepping down after more than 40 years at the company, effective December 1, 2024. According to Bloomberg, Gelsinger was reportedly given the option to retire or be removed following a meeting with the board about Intel’s struggles to catch up with Nvidia and reclaim market share.
Gelsinger, who returned as CEO in 2021, faced a tough road trying to turn Intel around. The company missed out on the AI chip boom that skyrocketed Nvidia, dealt with delays in new tech, CPU instability issues, and even lost out on being Microsoft’s AI PC launch partner. This year hasn’t been kind either—Intel reported $7 billion in losses from its chipmaking division, laid off over 15,000 workers, and paused semiconductor factory projects in Europe.
For now, CFO David Zinsner and Products CEO Michelle Johnston Holthaus will share leadership as co-CEOs while Intel looks for a permanent replacement. Despite the challenges, Gelsinger called leading Intel “the honor of my lifetime,” saying the company’s tough decisions this year were necessary to navigate a changing market.
Leading Intel has been the honor of my lifetime. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family and can look back with pride at all that we have accomplished together. Thank you all!
— Pat Gelsinger (@PGelsinger) December 2, 2024
Pat Gelsinger, 63, has had a long history with Intel, starting there as a teenager. After leaving in 2009 to lead VMware, he returned in 2021 with big plans to bring Intel back to the top of the chipmaking game, competing with giants like TSMC and Samsung. Gelsinger aimed to boost Intel’s factory network, including a huge new facility in Ohio backed by Chips Act funding.
Despite bold moves, tough competition and rising costs made the journey rocky. News of his departure gave Intel’s stock a quick 6% bump, but the excitement faded, and shares ended the day down 0.5% at $23.93—a reflection of Intel’s 52% drop this year amid ongoing challenges.
Intel’s biggest challenge lately? The AI boom—an area where Nvidia has completely taken over. Once just the go-to for gaming graphics cards, Nvidia has turned its chips into must-haves for AI and data centers, skyrocketing to become the most valuable semiconductor company out there. Meanwhile, Intel’s efforts to carve out a slice of this lucrative market haven’t really taken off yet.
