Swan off

13 Jan 2021 By Richard Beales Follow @richardbeales1

VMware boss Pat Gelsinger will replace Bob Swan at the chipmaker, adding 12% to the stock price. It could help Intel regain its technology focus and open the way to changes proposed by activist Dan Loeb. Gelsinger now has the weight of those expectations on his shoulders.

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Intel said on Jan. 13 it will replace Chief Executive Bob Swan with VMware CEO Pat Gelsinger. Swan will step down on Feb. 15. The move was first reported by CNBC.

Intel stock opened up 12% in New York trade on Jan. 13. VMware shares started down 5%.

Activist hedge fund Third Point in December called on Intel to evaluate strategic alternatives including whether the chipmaker should separate its manufacturing and design operations, and whether it should divest “certain failed acquisitions.”

Gelsinger, who spent 30 years at Intel before joining EMC and then VMware, was Intel’s first chief technology officer.

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