Intel stock rises after strong earnings in the last quarter before new CEO takes over

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Intel faces a critical moment as new CEO Pat Gelsinger takes over next month for Bob Swan and activist hedge fund Third Point calls for major changes.

Details of Intel's earnings became available on financial wires minutes before the markets closed on Thursday.

The strong earnings report covering the quarter ending in last December comes a critical moment for the chip giant as Thursday's report is the last with Bob Swan in the CEO role. On February 15, Pat Gelsinger takes over.$1.42 vs $1.10 expected by Refinitiv consensus estimates.: Q1 2020 revenue of $18.6 billion and EPS of $1.03.A leadership transition isn't the only challenge facing Intel.

Third Point CEO Dan Loeb also honed in on Intel's biggest problem in his December letter when he noted Intel has fallen behind Asian chip foundries in terms of its ability to manufacture the most advanced processors. Intel's latest chips use a 14 nanometer process, as they have since 2013, while competitor chips manufactured by TSMC are currently using a 5 nanometer process. A smaller process is better because more transistors can fit into the same chip, boosting power and efficiency.

 

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