Analysts reset Intel stock forecasts after CEO exits
It was a sign of the times.
On Nov. 1 S&P Global said that AI-chip heavyweight Nvidia (NVDA) would replace Intel (INTC) in the Dow Jones Industrial Average "to ensure a more representative exposure to the semiconductors sector."
Related: Can Intel be rescued? Analysts review embattled tech stock before earnings
It's quite a comedown for the company, which had been a member of the Dow 30 for 25 years and had once billed itself as "the Sponsors of Tomorrow."
Intel was founded in 1968 by semiconductor pioneers Robert Noyce and Gordon Moore, who is credited with the observation known as Moore’s law. That benchmark says the number of transistors in an integrated circuit doubles about every two years.
Intel created the world's first commercial microprocessor chip — the Intel 4004 — in 1971, and the company was a major factor in the rise of Silicon Valley as a high-tech center.
But the company faced increased competition and made a series of missteps, which including passing on the chance to develop the chip for Apple’s (AAPL) iPhone, paving the way for rivals like Qualcomm (QCOM) to dominate the mobile market.
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Intel also reportedly had a chance to take a 15% stake in OpenAI, the company behind ChatGPT, for $1 billion, but nixed the deal. That was partly because then-CEO Bob Swan did not think generative-AI models would make it to market in the near future, according to Reuters.
ChatGPT launched in 2022 and is now reportedly valued at about $80 billion.
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In 2021, Intel said Pat Gelsinger, who started with the company in 1979 when he was 18 and eventually became its first chief technology officer, would take over as CEO.
"I have tremendous regard for the company’s rich history and powerful technologies that have created the world’s digital infrastructure," Gelsinger said then.
He noted that he had "learned at the feet" of Noyce, Moore and former CEO Andrew Grove, who is credited with transforming Intel into the world's largest semiconductor company.
Related: Pat Gelsinger: Intel CEO’s net worth & salary as he steps down
"I believe Intel has significant potential to continue to reshape the future of technology and look forward to working with the incredibly talented global Intel team to accelerate innovation and create value for our customers and shareholders,” Gelsinger said.
In 2023, during the company’s global “Intel Unleashed: Engineering the Future” webcast, Gelsinger announced the IDM 2.0 strategy, which he said would be "setting a course for a new era of innovation and product leadership at Intel."
