Intel stands by forecast after CEO comes out, vows to be thriftier

(Bloomberg) — Intel Corp. stuck with its current financial forecast during a presentation Wednesday, after the sudden departure of Chief Executive Officer Pat Gelsinger, while also saying it would keep a tight rein on capital spending.

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“We stand by the guidance we gave on earnings,” Chief Financial Officer and Interim Co-CEO Dave Zinser said Wednesday during the UBS Global Technology and AI Conference. He also said that Intel’s “core strategy” remains intact.

Still, he and Intel executive Naga Chandrasekaran offered 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 shift,” said Chandrasekaran, a Micron Technology Inc. said the veteran, who oversees Intel’s manufacturing operations and supply chain. The company first made enough chips to satisfy demand, an approach Chandrasekaran called “no wafer left”. Intel now has “no capital left behind,” 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 removed, Bloomberg reported earlier, citing people familiar with the matter. Last month, the company said sales in the current quarter would be $13.3 billion to $14.3 billion, compared with an average analyst estimate of $13.6 billion.

At the UBS event, the executive said Intel would continue Gelsinger’s strategy of turning the company into a “world-class” foundry — a company making chips for outside customers. Zinsner said Intel also has no concerns about its CHIPS Act grant. The Santa Clara, California-based company is set to receive nearly $7.9 billion in awards as part of a federal program to revive the domestic semiconductor industry.

“It’s an ironclad agreement,” Zinsser said. He also noted that many of the CHIPS Act’s incentives would come in the form of tax credits rather than grants, and that the incoming Trump administration would come in the form of “values manufacturing.”