Intel names Lip-Bu as new CEO, storing 12%

Intel said Wednesday that he had designated Lip-bu as its new CEOWhile the chips manufacturer tries to recover from a tumultuous four -year -old race under Pat Gels.

The CEO of Cadence Design Systems was previously, which makes the software use all the main chips designers, including Intel. He was a member of the Intel Board, but started last year, citing other commitments.

It replaces the internal co-cebos David Zinsner and MJ Holthaus, who took care in December when the former CEO of Intel Patrick Gelsinger was expelled. So also joins the Board of Intel.

The appointment closes a chaotic chapter in Intel’s history, since investors pressed the semiconductor company to reduce costs and turn companies due to the decrease in sales and the inability to decipher the boom in artificial intelligence market.

Intel shares increased more than 12% in extended operations on Wednesday.

It becomes the fourth permanent CEO in Intel in seven years. After Brian Krzanich’s resignation in 2018, after the revelations of an inappropriate relationship with an employee, Bob Swan took the helm in January 2019. He left two years later after Intel suffered numerous blows of competitors and diapers in delays. Swan was happened by Gelsinger.

Gelsinger took over Intel in 2021 with a bold plan to transform the company’s business to manufacture chips for other companies, in addition to yours, becoming a foundry. But the general income of Intel’s products continued to decrease, and investors worried about the important capital expenses necessary to become a cast iron, including the construction of a $ 20 billion factory complex in Ohio.

The past fall, after a disappointing gain report, Intel seemed to be on sale and, according to reports, attracted the interest of rival companies including Qualcomm. The analysts evaluated the possibility of Intel turning to their foundry division or will sell their product division, including server and PC chips, to a rival.

Intel also does not have a product with a significant market share that competes with the graphic processors of Nvidia, which have become the chosen chip to develop in recent years.

Intel’s results did not improve immediately after Gelsinger was expelled. In January, Intel issued a weak forecast even when he exceeded profits and income. The company pointed out seasonality, economic conditions and competition, and said that customers are digesting the inventory. The perspective of tariffs was to add to uncertainty, said Zinsner.

Intel said Zinsner will return to his previous role as CFO. Holthaus will remain in charge of Intel products.

Intel was eliminated from the Dow Jones industrial average in November and was replaced by Nvidia, reflecting the dramatic change of fortune in the semiconductor industry.

Intel’s shares lost 60% of their value last year, while the price of Nvidia shares fired 171%. At the end of Wednesday, Intel market capitalization was $ 89.5 billion, less than a trission of the NVIDIA assessment.