Shares of Intel Corp. are soaring in trading Wednesday morning after the company confirmed that CEO Bob Swan will step down and be replaced by VMware Inc. CEO Pat Gelsinger. Shares of Intel, INTC, + 7.81% were up almost 9% on Wednesday, while shares of VMware were down 4%.
Intel shares rise after company replaces CEO Swan with VMware boss
Swan officially took over as CEO two years ago after having served in an interim capacity for seven months prior. His term as CEO ends on February 15. Intel said the announcement “is not related to Intel’s financial performance in 2020” and that the company expects to exceed its fourth-quarter earnings and earnings guidance. Swan oversaw a tumultuous period for Intel, as the company lagged behind with its process technology. Intel admitted in July that its next generation of chips would be delayed and that the company could choose to work with a third party to make them. Intel shares have gained 7.7% in the last three months, as the Dow Jones Industrial Average added 8.4%.