Intel (INTC) is looking for a new CEO after announcing Pat Gelsinger’s sudden departure. Bloomberg Intelligence senior tech industry analyst Mandeep Singh joins Morning Brief Hosts Seana Smith and Brad Smith to discuss what’s next for the chipmaker as it looks for Gelsinger’s replacement as the company struggles to keep up in the artificial intelligence (AI) space dominated by Nvidia (NVDA) “For a company like Intel to have this sort of uncertainty when they were not executing well. If you are a customer of Intel, which a lot of the hyperscaler and the enterprise companies are, when it comes to the Intel CPUs, you would rather go to Nvidia, which you were going there already for the AI accelerators,” Singh says. He notes that a key risk of ousting Gelsinger for Intel is the associated uncertainty that deters customers. “For the board to bring anybody new without having the sort of credentials that Pat had really would create more uncertainty and, probably, market share loss to hyperscalers doing their own chips.” “Pat Gelsinger had all the credentials. So the fact that he couldn’t turn it around just goes to show how tough it is to turn around a company like Intel.” The analyst explains Intel’s current challenges are exacerbated by stiff competition among chipmakers in the Nvidia-dominated AI era. “The thing about semiconductor chip making is once you fall behind … the dominant company continues to gain share and they really have sort of a monopoly.” He says this pattern has played out before in the semiconductor market with Intel being on the other side of the dynamic when it held a dominant position in the central processing unit (CPU) market. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
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