Shares of Intel (NASDAQ: INTC) continued to retreat today after an initial pop following the departure of CEO Pat Gelsinger. Intel added new members to its board of directors this morning, but a picture is also emerging of a chaotic search for a new CEO.
As a result, the stock fell 4.3% as of 11:15 a.m. ET.
Do you miss the morning spoon? Breakfast news delivers it all in one fast, silly and free daily newsletter. Register for free »
It’s rare for a company to send a CEO home without a replacement ready or a clear strategy for finding one, but it appears Intel has done just that.
Since the board pushed Gelsinger into retirement, the company has reportedly reached out to everyone Marvell CEO Matt Murphy to former Cadence Design Systems CEO and former Intel board member Lip-Bu Tan, as well as several executives from Taiwanese semiconductor manufacturing.
Intel also presented at an investor conference and faced a number of questions from puzzled analysts about the CEO situation, and investors seem unhappy with the answers. While the stock underperformed under Gelsinger’s tenure, he also seemed to have an ideal resume for the job as the company’s former chief technology officer and CEO of VMware for several years.
The timing is also strange, as Gelsinger had just announced a large-scale restructuring in August and Intel’s foundry is about to roll out its 18A (18 angstroms) process, meaning the decision seems highly disruptive to the company’s priorities company in the short term.
Intel also called former ASML CEO Eric Meurice and Steve Sanghi, the interim CEO of Microchip technology as members of the board of directors.
It’s unclear how long the CEO search will last, but the longer it goes, the worse it will likely be for the stock and the company. The foundry strategy now also appears to be in limbo, as Gelsinger was likely ousted due to the challenges at the foundry division.
The company reaffirmed its expectations at the investor conference, but the chip stock could easily fall if questions about the gap in its leadership persist.
Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.
On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Nvidia: If you had invested $1,000 when we doubled in 2009, you would have $376,324!*
-
Apple: If you had invested $1,000 when we doubled in 2008, you would have $46,022!*
-
Netflix: If you had invested $1,000 when we doubled in 2004, you would have $491,327!*
We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.
See 3 “Double Down” Stocks »
*Stock Advisor returns December 2, 2024
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends ASML, Cadence Design Systems, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Marvell Technology and recommends the following options: short February 2025 $27 calls on Intel. The Motley Fool has a disclosure policy.
Why Intel Stock Was Sliding Again Today was originally published by The Motley Fool
