Intel CEO Pat Gelsinger was forced to resign Monday following a heated meeting with the company’s board of directors last week. The board reportedly lost confidence in his ability to turn the company around, instead adding fuel to the fire at the chipmaker. Intel stock (INTC) responded positively to the news of Gelsinger’s sacking, climbing nearly 6%.
Pat Gelsinger met with the board last week about the company’s progress on winning back market share, according to sources familiar with the matter. With rival chipmaker Nvidia (NVDA) continuing its dominance, Intel’s board was hoping to have the gap far slimmer by now under Gelsinger than it currently is. As a result, Gelsinger had the option to retire or the company would remove him. He ultimately chose to announce the end of his career at Intel, stepping down with immediate effect.
“Today is, of course, bittersweet as this company has been my life for the bulk of my working career,” Gelsinger said in a statement. “It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics.”
Pat Gelsinger Leaves Intel
Gelsinger said last month he had a “lot of energy and passion,” still had the support of the board, and was making progress. He expressed determination to keep the company together in the face of reports that it was the subject of takeover bids. However, Intel’s board meeting last week revealed that the company thought much differently.
In a statement, the company said its Chief Financial Officer David Zinsner and Michelle Johnston Holthaus will serve as interim co-CEOs. Intel is actively looking for a full-time replacement CEO. Frank Yeary, an independent chair of the board of Intel, will serve as interim executive chair.
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Previously hailed as a savior of Intel, Gelsinger’s relationship with the company quickly turned sour, as the company returned poor results in 2024. Year-to-date, INTC stock has fallen nearly 50%, while its rival NVDA has surged over 180%.