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Investing.com -- Intel (NASDAQ:INTC) announced a series of executive changes and organizational shifts, which Wells Fargo views as another sign of progress in the chipmaker’s transformation.
The company said Michelle Holthaus, co-CEO of Intel Products since December 2024, will step down and serve as a strategic advisor until March 2026.
Her departure will see Kevork Kechichian, formerly an executive at Arm, take charge of Intel’s Data Center Group, while Jim Johnson, a veteran with more than four decades at the company, will lead the Client Computing Group.
Alongside the leadership reshuffle, Intel officially established its Custom Silicon Team within a new Central Engineering Group.
Wells Fargo analyst Aaron Rakers highlighted this as “a positive/validating step forward.” The unit, led by Srini Iyengar, will focus on building a business to provide custom and semi-custom x86 silicon for a wide range of customers.
The move comes after earlier comments from Intel board member Lip-Bu Tan, who said three major data and AI platforms were exploring new x86 solutions.
Analysts see investor attention centering on potential deals, given Intel’s past work with hyperscalers, U.S. government backing, and its stated willingness to pursue custom offerings.
Intel also expanded the remit of Naga Chandrasekaran, its EVP and Chief Technology and Operations Officer, who will now oversee Foundry Services in addition to existing duties.
Rakers noted this fits into the broader realignment that includes reducing management layers by about 50%, cutting headcount to around 75,000, and executing portfolio moves such as divesting part of Mobileye and selling a majority stake in Altera.
Wells Fargo maintained its Equal Weight rating and $22 price target, calling Intel’s transformation a “prove-it story” as it works toward margin recovery and process node leadership.