Intel CEO Bob Swan is expected to retire from his post on February 15, CNBC’s David Faber reported Wednesday.
VMWare CEO Pat Gelsinger will take over the position, sources told Faber.
Intel stock rose about 13% in pre-sale trading after the news. VMWare stock was down nearly 5%.
Swan was named CEO in January 2019 after serving as interim CEO for seven months.
During Swan’s tenure, Intel has received blows from competitors. Over the summer, Intel announced that its latest generation chipsets would be delayed while AMD was already delivering inside laptops. Apple announced in the fall that it would use its own proprietary chips in its Mac computers, breaking a 15-year partnership with Intel for their chip stores.
In December, Third Point, a hedge fund managed by Dan Loeb, urged the Intel board to explore “other strategic options.” That came after Intel lost market share to rivals AMD, Samsung and TSMC. .
Third Point urged Intel to move from “failed property” and criticized Intel for its “loss of manufacturing leadership.” The company recently acquired about $ 1 billion in Intel, according to Reuters.
Critics have pointed out that Intel’s leader did not come from a technical background, having previously been a CFO. With Gelsinger, that will never happen again. Gelsinger previously worked at Intel, eventually becoming the first Chief Technology Officer.
Intel is expected to make the announcement officially later Wednesday.
This story is evolving. Check back for updates.
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