• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Investing

Intel CEO retires as chipmaker loses ground in AI revolution

by December 3, 2024
written by December 3, 2024

Intel’s CEO is stepping down as the stalwart American chipmaker has struggled to keep pace with the artificial intelligence revolution.

The company announced that Pat Gelsinger, who’d led Intel since 2021 and logged more than 30 years in various positions with the chipmaker, had retired from the company effective Sunday.

“While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence,’ Intel’s board chair, Frank Yeary, said in a news release.

Intel, once the standard-bearer for American computer chip manufacturing, has struggled to keep up with the turn toward AI computing over the past couple years. Having largely missed out on the smartphone boom of the 2010s, Intel could not afford another misstep by failing to anticipate the next major tech trend.

Yet, it largely has missed the mark — and has suffered disastrous consequences as a result.

As the AI boom began to dawn in 2022, major tech giants began to tap a rival chipmaker, Nvidia, to handle many of their AI computer processing needs.

That’s because Nvidia’s graphics processing unit (GPU) chips are better able to handle the strenuous computing power needs of AI processes. Nvidia’s GPUs are able to perform calculations more efficiently thanks to their ‘parallel processing ability,’ whereas regular computer-processing units, or CPUs — the kind of chips Intel has long specialized in — are better suited for straightforward computing tasks like writing files to a disk.

As a result, demand for Nvidia’s chips has proven virtually insatiable.

Intel shares have declined 61% since Gelsinger took over, while Nvidia’s surged more than 820% over the same time period.

The S&P 500 rose 54% over that time.

Nvidia is now valued at more than $3 trillion, while Intel’s market cap stands at approximately $100 billion — about 30-times smaller than Nvidia.

Gelsinger had embarked on a campaign to turn the company’s fortunes around, stating in Intel’s most recent earnings report that it was in the midst of its most critical restructuring since it was established in 1968.

The Biden administration has sought to support Intel through CHIPS Act funding — but last month, announced it was reducing the size of a planned investment by $600 million compared with the award it had earlier announced in March. While some of that was due to Intel having also announced a $3 billion Defense Department contract, the Commerce Department noted that timelines for some projects had extended beyond a 2030 government deadline.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Art Cashin, Wall Street veteran and CNBC regular, dies at age 83
next post
UK retailers report weakest sales since April, BRC survey shows

You may also like

Spirit Airlines files for Chapter 11 bankruptcy protection...

August 30, 2025

Retail panic: What the end of the ‘de...

August 29, 2025

Cracker Barrel rebrand: Why companies retreat when faced...

August 29, 2025

Trump accused Fed governor Lisa Cook of mortgage...

August 29, 2025

Trump accused Fed Governor Lisa Cook of mortgage...

August 28, 2025

AI detects sound of frog species threatened in...

August 28, 2025

Lego hits record revenue in first half of...

August 28, 2025

Google has eliminated 35% of managers overseeing small...

August 28, 2025

Cracker Barrel will go back to old logo...

August 27, 2025

Frontier Airlines goes after struggling rival Spirit’s customers...

August 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a year

      August 30, 2025
    • Retail panic: What the end of the ‘de minimis’ exemption means for brands across the globe

      August 29, 2025
    • Cracker Barrel rebrand: Why companies retreat when faced with consumer criticism

      August 29, 2025
    • Trump accused Fed governor Lisa Cook of mortgage fraud. That can be hard to prove, experts say.

      August 29, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (626)
    • Stock (6,426)

    Latest News

    • Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a year
    • Retail panic: What the end of the ‘de minimis’ exemption means for brands across the globe

    Popular News

    • BOJ will hike rates if it has more confidence in forecasts, says deputy governor Himino
    • China’s scorching rally takes a breather to wait on stimulus

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy