{"id":156262,"date":"2021-01-16T21:51:00","date_gmt":"2021-01-16T18:51:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/"},"modified":"2021-01-16T21:51:00","modified_gmt":"2021-01-16T18:51:00","slug":"outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/","title":{"rendered":"#Outside the Box: With Gelsinger as new CEO, Intel gets an engineer who can bring back innovation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df94c97d21\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df94c97d21\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#Pat_Gelsinger_with_eight_patents_to_his_name_will_aim_to_narrow_the_gap_to_competitors_AMD_and_Nvidia\" >Pat Gelsinger, with eight patents to his name, will aim to narrow the gap to competitors AMD and Nvidia.<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#AMD_applies_pressure\" >AMD applies pressure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#Big_customers_lose_faith\" >Big customers lose faith<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#Engineer_vs_businessman\" >Engineer vs businessman<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#Righting_the_ship\" >Righting the ship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#Company_culture\" >Company culture<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-with-gelsinger-as-new-ceo-intel-gets-an-engineer-who-can-bring-back-innovation\/#Daniel_Newman\" >Daniel Newman<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Outside the Box: With Gelsinger as new CEO, Intel gets an engineer who can bring back innovation<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Pat_Gelsinger_with_eight_patents_to_his_name_will_aim_to_narrow_the_gap_to_competitors_AMD_and_Nvidia\"><\/span>\n  Pat Gelsinger, with eight patents to his name, will aim to narrow the gap to competitors AMD and Nvidia.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000129154\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       It wasn\u2019t hard to sense that change was on the horizon for Intel. <\/p>\n<p> After a tumultuous few weeks for the company, including the well-documented memo from activist investor Dan Loeb, it would be difficult not to expect Intel\u2019s board to react with a bold move.<\/p>\n<div class=\"paywall\">\n       So the legendary Santa Clara, Calif.-based chip maker lured VMware<br \/>\n        VMW,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209864107\/composite\" class=\"negative\">-0.55%<\/bg-quote><br \/>\n       Chief Executive Officer Pat Gelsinger. Let\u2019s not overstate Loeb\u2019s role in this. Rumors of Intel\u2019s<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"negative\">-2.82%<\/bg-quote><br \/>\n       search for a new CEO had been pervasive for five months as investors lost patience.<\/p>\n<p><strong>Therese Poletti: <\/strong> Can Intel\u2019s \u2018boy wonder\u2019 pull a Steve Jobs? <\/p>\n<p>Intel\u2019s challenges are well-understood, and many of them preceded Bob Swan\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointment as CEO in January 2019. This has been a big reason that the company\u2019s stock price has been repressed, despite tremendous growth for its biggest competitors, namely AMD<br \/>\n        AMD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208144392\/composite\" class=\"negative\">-2.84%<\/bg-quote><br \/>\n       and Nvidia<br \/>\n        NVDA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200467500\/composite\" class=\"negative\">-2.58%<\/bg-quote><span>.<\/span><br \/>\n       Even Qualcomm<br \/>\n        QCOM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206679220\/composite\" class=\"negative\">-2.34%<\/bg-quote><br \/>\n       has enjoyed a surge as regulatory battles subsided and 5G demand surged. <\/p>\n<p>In short, Intel has struggled to get out of its own way. The company\u2019s executives have said the right things, but when timelines for new chips were coming due, the company was forced to delay. This was especially prevalent for the company\u2019s 7- and 10-nm launch, which saw many delays costing the company big in retooling their fabrication plants.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"AMD_applies_pressure\"><\/span>AMD applies pressure<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Perhaps more costly than production delays was strong competition from AMD. CEO Lisa Su\u2019s bold moves were bearing fruit as the company\u2019s Ryzen CPUs took notebook market share from Intel, which was clearly vulnerable. Couple this with Intel being notably slow in defining its positioning in the artificial intelligence space, seeing Nvidia strengthen its position, while Intel\u2019s first big acquisition, Nervana, stall out only to be shelved as it opted to acquire a more robust solution in Habana. However, this delay to market once again set back the company in a key market, which investors couldn\u2019t turn a blind eye to.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Big_customers_lose_faith\"><\/span>Big customers lose faith<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Apple\u2019s<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"negative\">-1.37%<\/bg-quote><br \/>\n       entry into the fray as a chipmaker was a pivotal moment that likely accelerated the course to appoint Gelsinger. While the market share for Mac (about 8%) and its impact on Intel\u2019s revenue (2%-3%) wasn\u2019t as large as some may think, the perception that Apple building its own chip rather than partnering with Intel was difficult for many investors to accept. This lengthy partnership\u2019s erosion from working together to build modems for their next-generation iPhones to outfitting their Macs is all but over. <\/p>\n<p>Amazon\u2019s<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-0.74%<\/bg-quote><br \/>\n       AWS also deepened its chip offerings and Microsoft\u2019s<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"negative\">-0.17%<\/bg-quote><br \/>\n       plan to follow suit only added pressure on Intel. The optics here are bad, and the Street made that clear with its bearish valuation of the company.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Engineer_vs_businessman\"><\/span>Engineer vs businessman<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Gelsinger\u2019s profile comes as a stark contrast to Swan\u2019s. Gelsinger is renowned for his engineering, and he is deeply respected within Intel\u2019s walls, having spent 30 years at the company, including serving as its first-ever chief <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> officer from 2000-2005. Gelsinger has a graduate degree in electrical engineering from Stanford and eight patents in areas including computer architecture. In contrast, Swan has an MBA from Binghamton.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Based on several factors, Gelsinger is an excellent decision for Intel, and the timing of his appointment is important. While the noted challenges that Intel has faced over the past several years have certainly impacted investor sentiment and the stock price, the company has overall sustained strong market share in key areas, including its data center CPUs, which still sits at over 90% of the market. <\/p>\n<p>That business is highly profitable, which has over the past several quarters helped to prop up Intel\u2019s earnings when CPU shortages and delays slowed results on the client computing side of the business. <\/p>\n<p>The company has also maintained deeply seated partnerships with its  original equipment manufacturer (OEM) and original design manufacturer (ODM) partners, and continues to benefit from its ecosystem\u2019s strength.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Righting_the_ship\"><\/span>Righting the ship<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>With PC demand and cloud computing growing, one of the most complete portfolios of chips to enable partners, the situation that Gelsinger is inheriting isn\u2019t as dark as some may insinuate. In fact, I think a few short-term wins, especially with its new XPU strategy and a bold showing of operational excellence with its new chip designs, could right the ship quickly for Intel, returning investor confidence and a jolt to the stock price.<\/p>\n<p>In terms of Gelsinger\u2019s early days and areas of focus, I think he will be pivotal in returning the company to its technology leadership roots. This is in his DNA, and it has served him well in leading VMware to consistent double-digit revenue growth in an increasingly crowded market. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Company_culture\"><\/span>Company culture<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Gelsinger\u2019s impact on the culture will help speed innovation, attract top engineering talent and help Intel push the envelope in its efforts to outpace the competition. As a result, it will regain some market share it has lost while building a broad portfolio of data-centric solutions that have driven Intel\u2019s total addressable market (TAM) north of $300 billion. <\/p>\n<p>Lastly, I do see Gelsinger turning the screws on operational excellence. This will mean a bold push to meeting the timelines that have been alluded to in recent years for the company\u2019s next-generation process nodes. This could include a level of de-risking that could see Intel having its chips not only made in its own fabrication plants but using outsourced manufacturing to assure volume and yield that can meet market demand.<\/p>\n<p>It\u2019s a tough slate for the soon-to-be Intel CEO, but there are many reasons to believe Gelsinger is a promising appointment to accelerate Intel\u2019s innovation and improve returns for investors who have stuck by the chip giant.<\/p>\n<p><em>Daniel\u00a0Newman\u00a0is the<br \/>\nprincipal analyst at\u202f<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/futurumresearch.com\/\" class=\"icon none\">Futurum Research<\/a>, which provides or has provided<br \/>\nresearch, analysis, advising, and\/or consulting to Nvidia, Intel, AMD, Arm,<br \/>\nMicrosoft, Amazon, Qualcomm, and dozens of companies in the tech and digital<br \/>\nindustries. Neither he nor his firm holds any equity positions with any<br \/>\ncompanies cited. Follow him on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>\u202f<\/em><em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/danielnewmanuv\" class=\"icon none\">@danielnewmanUV<\/a><\/em><em>.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Daniel Newman\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Daniel_Newman\"><\/span>Daniel Newman<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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It wasn\u2019t hard to sense that change was on the horizon for Intel. After a tumultuous few weeks for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":156263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-156262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=156262"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156262\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/156263"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=156262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=156262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=156262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}