Intel says VMWare boss will replace Bob Swan as CEO, shares surge

Intel Corp shares surged on Wednesday after the company said chief executive officer Bob Swan will step down on 15 February and be succeeded by VMWare boss Pat Gelsinger.

The chipmaker said Gelsinger is a highly respected CEO and industry veteran with more than four decades of technology and leadership experience, including 30 years at Intel, where he began his career.

"Pat is a proven technology leader with a distinguished track record of innovation, talent development, and a deep knowledge of Intel. He will continue a values-based cultural leadership approach with a hyper focus on operational execution," said Omar Ishrak, independent chairman of the Intel board.

"After careful consideration, the board concluded that now is the right time to make this leadership change to draw on Pat’s technology and engineering expertise during this critical period of transformation at Intel."

Intel said the leadership announcement was unrelated to its 2020 financial performance. The company said it expects fourth-quarter 2020 revenue and earnings per share to exceed the guidance provided on 22 October.

In addition, it said it has made strong progress on its 7nm process technology and plans on providing an update when it reports its full fourth-quarter and full-year results on 21 January.

In November last year, it emerged that hedge fund and Intel shareholder Third Point was putting pressure on Intel’s board of directors to hire an investment adviser to explore "strategic alternatives" after the company lost market share to the likes of Samsung and AMD.

At 1510 GMT, Intel shares were up 7.6% at $57.30, while VMWare shares were down 5.6% at $134.84.