Intel CEO on the ropes

I think Intel CEO, Pat Gelsinger is on the ropes.

I’ve watched his various media interviews and listened to Intel quarterly earnings calls. Tone and posture has changed over the past 2 years and not for the better.

Coupled with Intel’s woeful stock performance since his appointment as CEO in February 2021, using the word’s “A.I.” and “Data Centres” can only do so much for the stock price.

Intel had 5 rounds of job cuts in 2023.

It just won $8.5 billion in U.S. Federal subsidies from the $52 billion CHIPS Act Congress passed last year and was promised to receive $11 billion in loans.

Regarding the funds available within the CHIPS Act, CEO Pat Gelsinger said he is counting on additional federal funding this year for defense-related semiconductor projects. And he said he hopes for a second CHIPS Act to reverse the long erosion of domestic technology manufacturing.

“We’ll need at least a CHIPS 2 to finish that job,” Gelsinger said.

https://www.govtech.com/workforce/intel-wins-8-5b-in-federal-chip-factory-subsidies

Its an early call, but a change in CEO will be good for the stock price.

by Rob Zdravevski

April 29, 2024

rob@karriasset.com.au