Intel: shares jump on naming a new CEO

(CercleFinance.com) - Intel shares jumped on Wednesday after the chip giant named a new chief executive, a move some speculated could lead to some kind of strategic shift.


This morning, Intel appointed current VMWare CEO Pat Gelsinger's chief executive officer, succeeding Bob Swan, who was named CEO last year after serving as the company's interim CEO when Brian Krzanich abruptly left after a relationship with employee.

Gelsinger is returning to Intel as CEO, after first joining the company when he was just 18 years old, fresh out of the Lincoln Technical Institute. He spent 30 years at Intel, and served as the company's first ever chief technology officer between 2000 and 2005.

Intel shares jumped over 8% in early trading on the Nasdaq on the news.

"We think shares of Intel are positively reacting as signs of a strategic change/direction are welcomed," said Aaron Rakers, an analyst at Wells Fargo.

"However, we question whether a CEO change could limit/defer the announcement of meaningful strategic operational changes - expected next week," he said.

The analyst said he appreciates the appointment of Mr. Gelsinger as CEO, due to his prior experience at Intel and experience in both business and engineering.

The arrival of Gelsinger apparently sparked rumours that Intel could leave chip manufacturing, a decision that has been long called for by Wall Street analysts.

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