According to a recent report, Jim Cramer of CNBC after sharing the news of a change of leadership at Intel, one of his favorite semiconductor companies and one of its main rivals.
Besides this, intel has announced that current CEO Bob Swan will step down from the executive chair on February 15 and will be replaced by former VMware CEO Pat Gelsinger. In January 2019, Swan took over as chief or was promoted from interim CEO to permanent chief. Swann took over from Brian Krisnich, who resigned in June 2018.
As expected, Intel has remained silent on the possible reasons for the resignation. But it is clear that the wind has recently become lighter for the chip giant. This is because you are not only strong arch-rival with AMD but also with ARM chips, for example, using Apple’s switch for this structure. There have been problems switching to 7 to 10-nanometer technologies, which have plagued Intel for years.
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The shares of Advanced Micro Devices fell nearly 4% after Intel announced it would replace its chief executive within a month. Intel stock increased 7% in February as investors welcomed the announcement that current CEO Bob Swan will pave the way for VMware head Intel Alum Pat Gelsinger.
The “Mad Money” host said, “As long as Intel needs changes, the important thing here is that you can now buy less than three bucks of AMD’s more dynamic competitor, for things that are unlikely to happen – a turning point within Intel in the next three years”.
“Gelsinger did a good job at VMware, but Intel doesn’t really need the old Intel hand. It needs someone new, young, and hungry, they can move up the culture or destroy it completely.”
At AMD, buyers will receive a $110.4 billion stake in the company, doubling their stock last year. With a market capitalization of $233.4 billion, Intel’s stock will fall more than 16 percent by 2020. The company reported a delay in new chips in development and lost a major partnership with Apple.
Earlier to this, companies such as AMD and Samsung began gaining market share from Intel. And, AMD CEO Lisa Su has honored stewardship as a graphic chips maker, including reiterating his desire for the $335 billion semiconductor player for Nvidia.
“I want to buy the stock of the company that is crushing AMD,” Cramer said. “Under Lisa Su’s brilliant leadership, the semiconductor they run – always Intel’s second Fidel Intel – has become one of the best chip makers.”
The remarks come after a mixed day of stock trading on Wall Street. The Dow Jones Industrial Average fell 8 points, or 0.03 percent, to 31,060.47. The S&P 500 and Nasdaq Composite gained 0.23 percent, or 0.43 percent, to 3,809.84 and 13,128.95, respectively, from Tuesday.
