The Race to Save Intel: Who Will Be the Next CEO to Determine the Future of the Chip Giant?

Intel is at a crossroads. With a decline in business operations, missed opportunities in technology, a collapsing stock price, and the firing of its CEO, who will take the helm and try to turn things around?

Jan 27 2025

Intel is searching for a new CEO after the resignation (or dismissal) of Pat Gelsinger. But the company is looking for more than just a leader—it’s grappling with a massive crisis characterized by a loss of direction, lack of focus, missed opportunities, and falling behind competitors.

While much attention is on its failure to capitalize on the artificial intelligence (AI) market, Intel has struggled to recognize industry trends for the past 20 years and has failed to regain its leadership position. The next CEO will face two main options: prepare the company for a split and sale or attempt to rejuvenate and rebuild it.

Challenges and the Search for a CEO

Intel operates as a company with two major divisions:

Chip Manufacturing (Fabs) - This segment is growing but losing money. It’s essentially a commoditized business that relies on economies of scale. Taiwan Semiconductor Manufacturing Company (TSMC) dominates this market globally, but the U.S. government is incentivizing Intel to bring production back to the U.S. through subsidies, making local manufacturing more financially viable.

R&D and Innovation - Intel remains strong in several areas and generates significant revenue. However, its role in AI is minor compared to its competitors.

Intel Value vs. Competitors

Intel’s market cap is $90 billion—just over 2% of Nvidia’s $3.6 trillion valuation and around 8.5% of Broadcom’s market cap. Once a leader, Intel isn’t even in the top 10 semiconductor companies by market cap today.

Some view this as rock bottom, believing there’s nowhere to go but up, given Intel’s strengths and capabilities. However, history has shown that even stocks that drop 50–60% can continue to fall.

Intel’s troubles might best be addressed by splitting the company into two separate entities. This could involve selling off one or both divisions. While such a move depends on pricing, it’s worth noting that Intel is valued at a fraction of its competitors.

Alternatively, Intel could pursue internal improvement—a challenging route requiring reorganization, clear goals, and a well-defined growth strategy. However, the board seems skeptical of this path and may be positioning the company for a better sale or split in the near future.

The CEO selection will signal the board’s intentions. A candidate with expertise in chip manufacturing will indicate a focus on internal recovery, while someone skilled in mergers, acquisitions, and restructuring suggests a lean toward splitting or selling.

Potential Candidates

Michelle Johnston Holthaus, Currently leading Intel’s product group, Holthaus is a seasoned Intel executive with expertise in sales, marketing, and product development. However, critics argue she lacks deep technological knowledge and a strategic vision to revolutionize the company.

David Zinsner, Intel’s Chief Financial Officer and interim co-CEO, Zinsner is recognized for his financial acumen and ability to manage the company economically. However, he has expressed a lack of interest in the permanent CEO role.

Gregory Bryant, A former senior executive at Intel’s computer product group, now with Analog Devices, Bryant has broad technical expertise and a strong understanding of the market. Despite leaving Intel, some analysts see him as a potential candidate to return and lead the company.

Lip-Bu Tan is a prominent figure in the tech world, previously serving as the CEO of Cadence Design Systems. He is regarded as one of the most respected managers in the semiconductor industry due to his vast experience and ability to steer companies toward technological and financial growth. However, some experts believe that his expertise might be more aligned with smaller, more niche companies rather than a giant like Intel.

Diane Bryant, a former senior executive at Intel, has been mentioned as a possible candidate. She is credited with leading Intel’s Data Center Group to significant growth during her tenure. Since leaving Intel, she has held leadership positions at Google Cloud and other tech firms. Her deep understanding of Intel's culture and operations, combined with her experience in scaling businesses, makes her a strong contender.

Sanjay Mehrotra, currently the CEO of Micron Technology, is another name circulating in industry discussions. Mehrotra is widely respected for his ability to transform Micron into a leader in memory and storage solutions. His experience with navigating challenging markets and focusing on technological innovation might align well with Intel’s current needs. However, his availability and willingness to leave Micron remain uncertain.

Finding the Right Leader

The key question for Intel is not only who the next CEO will be but also what their strategic vision will entail. The company stands at a critical juncture, with its fate tied to how it addresses both its manufacturing operations and its research and development capabilities.

Intel’s manufacturing arm faces immense competition from TSMC (Taiwan Semiconductor Manufacturing Company), which has become the industry leader in advanced chip manufacturing. The U.S. government’s push to subsidize domestic semiconductor production may offer Intel some breathing room, but this alone won’t resolve the company’s underlying operational inefficiencies.

On the other hand, Intel’s research and development division must grapple with its declining influence in markets such as artificial intelligence, where competitors like Nvidia have established a commanding lead. Revitalizing this segment will require not just innovation but also a bold reimagining of how Intel approaches emerging technologies and market trends.

Internal or External?

The board’s decision on whether to choose an internal or external candidate will signal its broader strategy. Opting for an internal leader might suggest a focus on continuity and leveraging the company’s existing resources to drive gradual improvement. Conversely, selecting an external leader could indicate a willingness to embrace disruptive change, potentially involving significant restructuring or even the divestment of certain business units.

Pivotal Decision for Intel

Intel’s next CEO will inherit a company that still holds vast potential but is mired in challenges. Whether the solution lies in splitting the company, focusing on internal rejuvenation, or pursuing an aggressive merger and acquisition strategy, one thing is clear: the stakes have never been higher. The board’s decision will likely determine whether Intel can reclaim its former glory or remain a shadow of its past.

As the world watches closely, Intel’s search for a new leader may very well be its most critical business decision in decades.

FAQ: Key Questions About the Future of the Chip Giant

What Caused Intel's Dramatic Stock Drop in 2024?

A combination of technological failures, growing competition from companies like AMD and Nvidia, and misguided investments led to a decline in the company's performance and investor confidence.

Why Was Pat Gelsinger Fired?

Gelsinger attempted to drive a strategic shift, including opening Intel's manufacturing business to external clients. However, the failure to deliver quick results, coupled with internal resistance, led to his removal.

Who Is the Leading Candidate for CEO?

Lip-Bu Tan is considered one of the top candidates, though it's unclear if he's willing to take the role. Other potential candidates include Renee James and Stacy Smith.

How Will the Next CEO Impact Intel's Future?

The next CEO will need to lead with a clear technological strategy, strengthen Intel's position in the artificial intelligence sector, and restore investor confidence. Choosing the right leader will be critical for the company's future.

Is There a Chance Intel Will Be Acquired?

There have been rumors of a potential acquisition, including by Broadcom. However, such a move would require regulatory approval, particularly if it involves merging with another U.S. chip company.

Can Intel Return to Its Former Glory?

This depends entirely on the leadership and strategy chosen. Intel still holds significant resources and a unique position as a leading U.S. chip manufacturer, but the road to recovery will be challenging.

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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.