Investors shrug off new Intel CEO’s first public remarks as chipmakers decline
Lip-Bu Tan’s first public remarks as Intel’s new CEO weren’t enough to keep the company out of a downdraft among major chipmakers.
Intel was one of the worst performers in the chip sector in Tuesday trading, with shares of Nvidia, Arm, Broadcom, and AMD also slumping, among other chipmakers.
To be fair, Tan was only given reins to the struggling US semiconductor icon three weeks ago, but his comments at the chip giant’s Vision conference in Las Vegas on Monday were pretty vague.
Pronouncements such as, “We will redefine some of our strategy and free up the bandwidth,” or, “Some of our noncore business — we will spin it off,” sound a bit underwhelming given the praise showered on the former chief executive of Cadence Design Systems after he was tapped as Intel’s CEO on March 12.
After all, “we need to improve” isn’t exactly a leadership revelation for a company’s whose stock price has collapsed 60% over the past five years, vaporizing $125 billion in market cap.
But turnarounds do take time.
To be fair, Tan was only given reins to the struggling US semiconductor icon three weeks ago, but his comments at the chip giant’s Vision conference in Las Vegas on Monday were pretty vague.
Pronouncements such as, “We will redefine some of our strategy and free up the bandwidth,” or, “Some of our noncore business — we will spin it off,” sound a bit underwhelming given the praise showered on the former chief executive of Cadence Design Systems after he was tapped as Intel’s CEO on March 12.
After all, “we need to improve” isn’t exactly a leadership revelation for a company’s whose stock price has collapsed 60% over the past five years, vaporizing $125 billion in market cap.
But turnarounds do take time.
