The sudden departure of Intel's C.E.O. reignites concerns about U.S. dependence on foreign manufacturing.
In the last two years, semiconductor companies and chipmakers were largely the biggest winners in the financial markets. The ongoing advancement and rapid expansion of artificial intelligence helped stocks like Nvidia (NASDAQ: NVDA) rapidly expand their market capitalizations — sometimes by a factor of 3 or 4.
Investors don't seem to know what to do with Intel's (INTC -5.28%) recent CEO announcement.
Nvidia has been the poster child of the AI boom, with its stock surging by over 180% this year, pushing its valuation to close to $3.4 trillion. Nvidia's revenues are on track to more than double this fiscal year led by surging demand for its GPUs which have become the de facto chips for AI applications.
Intel Corp.'s much-needed addition of two executives with semiconductor expertise to its board comes as the chip maker's stock is on track for its worst year ever, after the ouster earlier this week of Chief Executive Pat Gelsinger.
Intel CEO Pat Gelsinger has resigned. With the board likely forcing his hand, questions remain on next steps. I think Intel should maintain course on its foundry turnaround with its new 18A node.
Intel appears to be treading in the middle of the road on a thin wafer line and investors could be better off if they trade with caution.
CNBC's Seema Mody reports on news regarding Intel.
In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss:
Shares of Intel (INTC -4.64%) continued to retreat today after an initial pop following the exit of CEO Pat Gelsinger. Intel added new members to its board this morning, but a picture of a chaotic search for a new CEO is emerging as well.
Intel Corp (NASDAQ:INTC, ETR:INL) has added two technology heavyweights to its board of directors to firm up the senior leadership at the struggling chipmaker. The new board additions are Eric Meurice, former chief executive of Dutch semiconductor machinery titan ASML Holding NV (NASDAQ:ASML), and Steve Sanghi, the currency chairman and interim chief executive officer of Microchip Technology Inc (NASDAQ:MCHP).
Intel on Thursday named two chip industry veterans to its board, as the struggling semiconductor firm looks for a new top boss following the recent ouster of Pat Gelsinger and tries to reclaim its lost glory.