Intel: The Problems Gelsinger Leaves Behind

Dec. 06, 2024 9:35 AM ETIntel Corporation (INTC) StockNVDA, TSM, INTC33 Comments

Summary

  • Intel's CEO Pat Gelsinger's departure highlights Intel's struggles with semiconductor leadership and competition from Nvidia, leading to revenue loss and market cap decline.
  • Gelsinger's unrealistic goals and managerial style led to misrepresented progress, culminating in the failure of the "5 nodes in 4 years" strategy.
  • Intel's data center business suffered due to Nvidia's superior GPU technology, with Intel's attempts like Ponte Vecchio failing to compete effectively.
  • The only viable path forward may involve spinning off Intel's Foundry, potentially leading to government intervention to preserve technological sovereignty.
  • This idea was discussed in more depth with members of my private investing community, Rethink Technology. Learn More »

Intel headquarters in Santa Clara, California, USA

JHVEPhoto

The sudden departure of Intel (NASDAQ:INTC) CEO Pat Gelsinger this week laid bare the myriad problems that Intel faces. Of these, the most pressing are the lagging efforts to regain semiconductor process leadership as well as contending with Nvidia's (

Consider joining Rethink Technology for in depth coverage of technology companies such as Apple.

This article was written by

20.37K Followers

Mark Hibben has a masters in Electrical Engineering from USC and is an independent iOS developer utilizing his experience working in the technology sector to inform his investing decisions. He is the leader of the investing group Rethink Technology.

Members of Mark’s investing group Rethink Technology gain access to a portfolio full of tech stocks that have high growth potential over a long 5-10 year timeline along with associated articles. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TSM, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About INTC Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on INTC

Related Stocks

SymbolLast Price% Chg
INTC
--