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Intel stock sinks after the chipmaker names Robert Swan as permanent CEO

about 5 years ago by Lucy Cinder

Intel stock sinks after the chipmaker names Robert Swan as permanent CEO

Data Centre

Intel's stock slid Thursday after the chipmaker named interim CEO Robert Swan to the position permanently, ending a months-long search following the ouster of Brian Krzanich for what it called a "consensual relationship" with an employee.

Swan, 58, has been interim CEO for seven months and chief financial officer since 2016. He was also elected to the board, the company said. Several media outlets including Bloomberg previously reported Swan didn't want the job.

Shares of Intel fell roughly 2.8 percent in early trading Thursday.

"When I was first named interim CEO, I was immediately focused on running the company and working with our customers," Swan said in a statement. "When the board approached me to take on the role permanently, I jumped at the chance to lead this special company. This is an exciting time for Intel: 2018 was an outstanding year and we are in the midst of transforming the company to pursue our biggest market opportunity ever."

Shareholders will be watching for Swan to continue diversifying Intel's portfolio outside of the PC.

The appointment marks Intel's seventh CEO in 50 years. Krzanich resigned as CEO and from the board in June.

Todd Underwood, currently vice president of finance, will take over as interim CFO while the company searches for a permanent CFO.

Analysts and media outlets speculated early on about about several external candidates, including two female executives who had left Intel relatively recently: former data center group head Diane Bryant and former president Renee James. Bryant's successor, executive vice president Navin Shenoy, was also thought to be a contender, along with Lisa Su, CEO of Intel rival AMD, and Sanjay Jha, who stepped down as CEO of chip manufacturer GlobalFoundries earlier this year.

Intel last week reported fourth quarter results beat expectations on earnings but fell short on revenue.

Under Krzanich, who took over from Paul Otellini in May 2013, Intel shrunk the percentage of revenue focused on PCs by 12 percentage points. At the same time, it raised the mix of revenue from data center products by 11 percentage points, filings show.

The company also acquired companies with an eye toward diversifying, including artificial intelligence chip company Nervana, programmable chip company Altera and car chip company Mobileye. Krzanich's Intel explored wearables with the help of acquisitions like fitness watch maker Basis Science but ultimately ended up moving away from wearables and closed its New Devices Group.

source cnbc

Industry: Data Centre News

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