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Intel Shares Rise as Investors Focus on CEO Search Amid Struggles

Intel’s (INTC.O) stock rose 1.7% in premarket trading on Friday after the company posted quarterly revenue that exceeded low expectations. Despite forecasting lower-than-expected revenue for the current quarter, investors are more focused on Intel’s ongoing search for a new CEO to lead the struggling semiconductor giant.

Former CEO Pat Gelsinger was ousted last month, long before he could complete his four-year turnaround plan. His departure came amid Intel’s declining manufacturing efficiency and missed opportunities in artificial intelligence (AI) investments, particularly its decision to pass on an investment in OpenAI, which later became an industry leader in generative AI.

The board has appointed CFO David Zinsner and senior executive Michelle Johnston Holthaus as interim co-CEOs, while an external search for a permanent replacement is underway.

Bernstein analysts noted that Intel’s poor results no longer shock investors, who have grown accustomed to the company’s struggles. They emphasized that, for now, CEO succession and future strategic decisions are more critical than quarterly earnings performance.

Once the dominant player in the PC market, Intel has steadily lost ground to rivals such as Advanced Micro Devices (AMD.O) and AI chip leader Nvidia (NVDA.O).

With AI-driven businesses prioritizing high-performance processors, Intel has struggled to secure major foundry customers and compete effectively in AI chip development.

Jefferies analyst Blayne Curtis highlighted that Intel’s Foundry business remains behind in technology and relies heavily on its traditional product sales, making strategic alternatives more challenging.


Market Reaction and Industry Trends

As investors digest Intel’s earnings, market movement in the semiconductor sector remains mixed:

  • Intel (INTC.O) rose 1.7% premarket.
  • AMD (AMD.O) gained 1%, reflecting its stronger position in high-performance computing.
  • Nvidia (NVDA.O) dipped nearly 1%, following its 171% surge in 2024.

Over the past year, Intel’s stock has dropped 60%, while Nvidia skyrocketed by 171%. AMD declined 18%, while Qualcomm (QCOM.O) managed a modest 6% gain.

Intel’s 12-month forward price-to-earnings ratio stands at 24.67, compared to Nvidia’s 28.17 and AMD’s 23.45, indicating that investors still see some long-term value in Intel despite its struggles.


What’s Next for Intel?

With the CEO transition front and center, investors and analysts are awaiting Intel’s strategic roadmap, especially in AI and foundry services. The company faces a critical decision on whether to restructure, refocus on core businesses, or seek new partnerships to regain its competitive edge.

For now, the semiconductor industry remains highly dynamic, with Intel facing an uphill battle against Nvidia and AMD, both of which are better positioned in the AI-driven computing era.

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