Intel\u2019s CEO is stepping down as the stalwart American chipmaker has struggled to keep pace with the artificial intelligence revolution.<\/p>\n
The company announced that Pat Gelsinger, who\u2019d led Intel since 2021 and logged more than 30 years in various positions with the chipmaker, had retired from the company effective Sunday.<\/p>\n
\u201cWhile 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,\u2019 Intel\u2019s board chair, Frank Yeary, said in a news release.<\/p>\n
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. <\/p>\n
Yet, it largely has missed the mark \u2014\u00a0and has suffered disastrous consequences as a result.<\/p>\n
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. <\/p>\n
That\u2019s because Nvidia\u2019s graphics processing unit (GPU) chips are better able to handle the strenuous computing power needs of AI processes. Nvidia\u2019s GPUs are able to perform calculations more efficiently thanks to their \u2018parallel processing ability,\u2019 whereas regular computer-processing units, or CPUs \u2014\u00a0the kind of chips Intel has long specialized in \u2014\u00a0are better suited for straightforward computing tasks like writing files to a disk. <\/p>\n
As a result, demand for Nvidia\u2019s chips has proven virtually insatiable.<\/p>\n
Intel shares have declined 61% since Gelsinger took over, while Nvidia\u2019s surged more than 820% over the same time period. <\/p>\n
The S&P 500 rose 54% over that time. <\/p>\n
Nvidia is now valued at more than $3 trillion, while Intel\u2019s market cap stands at approximately $100 billion \u2014 about 30-times smaller than Nvidia. <\/p>\n
Gelsinger had embarked on a campaign to turn the company\u2019s fortunes around, stating in Intel\u2019s most recent earnings report that it was in the midst of its most critical restructuring since it was established in 1968.<\/p>\n
The Biden administration has sought to support Intel through CHIPS Act funding \u2014 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.<\/p>\n<\/p>\n
Intel\u2019s 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\u2019d led Intel since 2021 and logged more than 30 years in various positions with the chipmaker, had retired from the company effective Sunday. \u201cWhile we have made significant […]<\/p>\n","protected":false},"author":0,"featured_media":12820,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-12819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=12819"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12819\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/12820"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=12819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=12819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=12819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}