Intel CEO Pat Gelsinger is out, stock up 5%

Intel announced Monday that CEO Pat Gelsinger has retired from the company, effective Dec. 1.

Intel named two interim co-chief executive officers while the board of directors searches for a new CEO: David Zinsner, Intel’s current CFO and executive vice president, and Michelle Johnston Holthaus, current CEO of Intel Products.

Shares of Intel were up 5% Monday in pre-market trading.

Gelsinger’s retirement comes a week after Intel and the CHIPS and Science Act office finalized a $7.86 billion grant, which is slated to fund the company’s factory-building plans.

Gelsinger took over the struggling chipmaker in 2021 but the company has only further deteriorated. Intel has been mired in an extended slump due to market share losses in its core businesses and an inability to crack the artificial intelligence market. The company’s stock has fallen 52% year-to-date.

Intel revealed plans in September to turn the company’s foundry business into an independent subsidiary, a move that would enable outside funding options. In August, Intel reported disappointing quarterly results, sparking the sharpest sell-off in 50 years, and said it would lay off more than 15% of its workforce as part of a $10 billion cost-reduction plan. CNBC reported that Intel had engaged advisors to defend itself against activist investors.

In late September, news surfaced that Qualcomm reached out to Intel about a possible takeover.

— CNBC’s Rohan Goswami and Jordan Novet contributed reporting.

This is breaking news. Please refresh for updates.