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Morgan Stanley: Few of Intel Leaders with Tech Experience
Following the departure of Brian Krzanich from his position as CEO of Intel, Robert Swan, who was the company’s CFO at the time, took over the relevant functions. Morgan Stanley experts believe that today there are not many people with technical education in Intel’s management as a whole, and this harms the company’s business.
Image source: Business Insider
As noted in the analytical note, Robert Swan’s activities to optimize Intel’s activities cannot be called unsuccessful in general, although now the company is on the verge of making the most important decision for itself on choosing a further development path. Intel will either have to significantly increase its dependence on third-party manufacturers, or try to maintain its own technological potential, which it has become accustomed to be proud of since its founding in the late sixties of the last century.
Another problem for Intel is the lack of technical specialists in the upper echelon of the company’s management personnel. Robert Swan not only does not have an engineering background, but also came to Intel after working in companies of a different profile. Morgan Stanley experts do not deny that Swan made the right decisions from an economic point of view, for example, he agreed with SK Hynix to sell Intel’s solid-state memory business. And yet, during Swan’s “reign”, Jim Keller, who is considered one of the most talented developers of processor architectures of our time, left the ranks of Intel, as well as Venkata Renduchintala (pictured above), who has been determining the direction since 2021. strategic development of Intel in terms of technologies and architectures.
Of course, now the post of senior vice president of Intel is occupied by Raja Koduri, who was engaged in the development of graphics solutions at Apple and AMD, but he is a narrow-profile specialist who, in determining the vector of Intel’s strategic development, can cause an unjustified “bias” towards graphics architectures.
According to Morgan Stanley experts, a person with extensive technical experience should act on behalf of Intel’s management, this would inspire the confidence of investors who have too often faced the company’s technological failures in recent years. Experts also believe that assets like Altera and Mobileye should be sold by Intel, because they can be sold at a good price, but their contribution to the corporation’s profits and revenues is not large enough to justify the costs of their maintenance and development.