On Wednesday, the world’s largest semiconductor chip manufacturer by revenue, Intel (INTC), announced that its CEO Bob Swan will be stepping down effective on February 15th.
He will be replaced by VMware’s (VMW) CEO Pat Gelsinger. VMware is an infrastructure software company specializing in cloud computing and hardware virtualization.
Swan’s tenure as CEO of Intel has been tumultuous. In mid-2020, Apple (AAPL) announced that it would be shifting macs away from Intel to ARM. Note that Nvidia has a planned $40 billion acquisition of ARM.
In July, Intel announced that it would delay the next generation of chips and was considering working with a third-party to manufacture them.
Intel is facing vigorous competition by Nvidia (NVDA) and AMD (AMD) which are taking advantage of Intel’s series of missteps and are gaining ground.
Shares of Intel jumped 8% at the announcement while shares of VMware plunged by more than 6%.