Bloomberg Tech Intel's Gelsinger Retires, Retailers Ready for Cyber Monday
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Dec 2, 2024 As Intel faces a pivotal moment with CEO Pat Gelsinger's retirement, the stock sees a surprising surge. The discussion dives into Intel's market struggles against competitors and the need for strategic partnerships. Meanwhile, retailers brace for a potentially record-breaking Cyber Monday amid shifting consumer behaviors and social media influences. TikTok's uncertain future looms as U.S.-China relations impact investments in technology and the entertainment landscape evolves with blockbuster successes.
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Intel Stock Reaction
- Intel's stock rose over 3% after CEO Pat Gelsinger's retirement announcement.
- Interim CEOs, CFO David Zinsner and Michelle Johnston Holthaus, will lead while the board searches for a replacement.
Intel's Foundry Business Struggles
- Intel's foundry business, despite $18B in revenue, operates at negative gross margins.
- Most of this revenue is internal, lacking major external customers like TSMC.
Intel's Foundry Business Optics
- Intel faces an optics problem: competitors hesitate to use their foundry due to competition on the design side.
- Divesting the foundry business could make it more appealing to companies like Amazon and Nvidia.