Intel Corp., following the sudden departure of Chief Executive Officer Pat Gelsinger, stuck to its current financial forecast during a presentation on Wednesday, while also saying it would keep a tight rein on capital spending.
“We are sticking to the guidance we gave on earnings,” Chief Financial Officer and interim co-CEO Dave Zinsner said during the UBS Global Technology and AI Conference on Wednesday. He also said Intel’s “core strategy” remains intact.
Nevertheless, he and Intel executive Naga Chandrasekaran presented a vision for the company that included a more conservative approach to capital spending – something that had been a concern for investors during Gelsinger’s tenure.
“There has to be a significant cultural change,” said Chandrasekaran, a Micron Technology Inc. veteran who oversees Intel’s manufacturing operations and supply chain. The company previously manufactured as many chips as needed to meet demand, an approach that Chandrasekaran called “no wafer left”. Intel now needs to adopt a “no capital left unturned” attitude, he said.
Intel announced Gelsinger’s retirement on Monday, less than four years after taking the job. His departure came after the board gave him the option to retire or be fired, Bloomberg previously reported, citing people familiar with the matter. Last month, the company said current quarter sales would be $13.3 billion to $14.3 billion, compared with an average analyst estimate of $13.6 billion at the time.
At the UBS event, executives said Intel would continue Gelsinger’s strategy of transforming the company into a “world-class” foundry – a company that makes chips for external customers. Zinsner said Intel also has no concerns about its CHIPS Act grant. The Santa Clara, California-based company is set to be awarded about $7.9 billion as part of a federal program to revive the domestic semiconductor industry.
“This is a strong agreement,” Zinsner said. He also said most of the CHIPS Act’s stimulus would come in the form of tax credits rather than grants, and that the incoming Trump administration “values manufacturing.”
