Intel Corporation (NASDAQ: INTC) announced on December 2 that CEO Pat Gelsinger will retire effective December 1, 2024, after a distinguished 40-year career at the company. The board has appointed David Zinsner, Intel’s CFO, and Michelle "MJ" Johnston Holthaus, EVP and newly appointed CEO of Intel Products, as interim co-CEOs while it searches for a permanent successor. Frank Yeary, Intel’s independent board chair, will serve as interim executive chair during this transition.

Gelsinger, 63, returned to Intel in 2021 with the goal of revitalizing its manufacturing and closing the gap with competitors like Taiwan Semiconductor Manufacturing Co. (TSMC) and Nvidia. However, as the company struggled to regain market share, particularly in the rapidly growing AI sector, the board lost confidence in his strategy. Gelsinger was presented with the option to retire or be removed after a recent board meeting, and chose the former.

During his tenure, Gelsinger initiated a significant expansion of Intel's manufacturing capacity, including a major new plant in Ohio, supported by U.S. government funding. Despite this, Intel has struggled to compete effectively in AI, where Nvidia has dominated the market. Gelsinger’s exit reflects mounting pressures on Intel to adapt to the shifting tech landscape.

Intel’s stock initially rose following the announcement, but later retreated, reflecting investor uncertainty. The company’s shares are down over 50% in 2024. Frank Yeary emphasized that the company remains committed to its product leadership and will focus on meeting customer needs during this transition.

Zinsner and Holthaus, who have extensive leadership experience at Intel, will oversee product and manufacturing efforts as the company works to regain competitiveness in a rapidly changing industry. The search for a permanent CEO will be a pivotal moment for Intel as it seeks to redefine its role in the global semiconductor market and address challenges in AI and process technology.