Semiconductor stalwart Intel (NASDAQ:INTC) saw its shares move up modestly on Friday afternoon in an effort to turn its business around. Recently, the company announced that it will appoint a new executive to head its foundry manufacturing unit. It’s the second leadership shakeup this year amid growing skepticism toward INTC stock.
According to Intel’s press release, the tech giant announced the appointment of Dr. Naga Chandrasekaran to the role of chief global operations officer, executive vice president and general manager for its Foundry Manufacturing and Supply Chain organization. Previously, Chandrasekaran served as senior vice president for Micron (NASDAQ:MU) under its Technology Development unit.
Chandrasekaran will succeed Keyvan Esfarjani, who will be retiring from Intel following nearly three decades of service. The company noted in the release that “Esfarjani’s distinguished career set a strong foundation for Intel Foundry, and his leadership in global supply chain resilience and manufacturing excellence has helped to position Intel’s business for long-term success.”
Esfarjani will stay with the chipmaker through the end of the year to facilitate a smooth transition.
Intel CEO Pat Gelsinger noted that Chandrasekaran is a “highly accomplished executive whose deep semiconductor manufacturing and technology development expertise will be a tremendous addition” to the tech firm.
Intel Hopes New Leadership Will Boost INTC Stock
According to CRN, Intel’s appointment of Chandrasekaran represents the second leadership transition. In less than three months since the official launch of the company’s foundry unit, the tech firm announced the retirement of Stuart Penn as its head. The reins have been handed to Kevin O’Buckley, who previously worked for semiconductor company Marvell Technology (NASDAQ:MRVL).
While INTC stock has long been a leading asset in the semiconductor ecosystem, it has lost significant momentum recently. Since the start of this year, INTC slipped roughly 35%. Over the past five years, the equity finds itself below parity to the tune of more than 39%.
Much of the concerns center on a lack of belief in INTC stock. Analysts currently rate shares a consensus hold, albeit with a $39.80 average price target that implies 27% upside potential. However, Wall Street rates rival Advanced Micro Devices (NASDAQ:AMD) as a strong buy with a $196.48 price target, projecting 41% growth.
It might seem like INTC stock is the better deal, trading at a trailing-year sales multiple of 2.38x. in contrast, AMD trades at 9.9x revenue. However, the big difference is that analysts project Advanced Micro to generate $22.68 billion in the top line, up 12.8% from last year. In contrast, market experts see Intel’s sales to hit $55.7 billion, up only 2.7% from the prior year.
Still, the aim is that with the new leadership changes, Intel can take back control of the business narrative.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in INTC and AMD.
