Intel's New Board Members Have Investors Drooling, But This Feels Like Putting Lipstick on a Pig

Welp, in less than a week after cutting ties with Pat Gelsinger, Intel is once again trying to convince the world it’s not dead (yet). And while, any move the company makes these days somewhat reeks of desperation, you have to give some credit to leadership that they’ve somehow managed to fetch two semiconductor OG’s in Erice Meurice and Steve Sangi to serve on the board and prove it still has a pulse. 

(Source: Giphy) 

So who are these guys, you ask? Good question. For starters, Mr. Meurice is the former CEO of ASML, the company that makes the EUV lithography machines Intel should’ve adopted years ago but didn’t—because, of course, Intel was too busy tripping over its own arrogance to see the future of chipmaking staring it in the face. 

What’s more, is that during Meurice's tenure, ASML’s stock quintupled, and the company became the gold standard in semiconductor equipment. Meanwhile, Intel was busy handing over its technological edge to TSMC and Nvidia on a silver platter. Then there’s Sanghi, a veteran of Microchip Technology who built it into a semiconductor giant before stepping back—only to return as interim CEO when things got rocky. Both guys are legit, but still unless these guys pull some massive strings, their resumes alone are going to save Intel from itself.

(Source: Bloomberg) 

Of course, the timing here is no coincidence.  Intel is still reeling from the ouster of Pat Gelsinger, the CEO who was supposed to lead the company’s grand comeback but instead doubled down on a costly and poorly executed foundry strategy that tanked investor confidence. Now, interim co-CEOs David Zinsner and MJ Holthaus are holding down the fort while the board scrambles to find a replacement. Plus, let’s not forget that Intel’s search for new  semiconductor-savvy directors started before Gelsinger got the boot, which tells you everything you need to know about how well things were going behind the scenes LOL.

But again, adding Meurice and Sanghi to the board, is still a power move that plugs the glaring hole in some of Intel’s leadership. As we all know the company has been bleeding credibility in the semiconductor world ever since Lip-Bu Tan left in August, leaving a boardroom full of people who know more about spreadsheets than silicon. So when it comes to the semiconductor as a whole, Meurice and Sanghi bring some serious industry clout to the company.

(Source: Giphy) 

But, but, but…. Even then, clout can only do so much in a boardroom. Intel who has been stuck in the past while the industry is sprinting into the future. Meanwhile Nvidia is printing money with AI chips, TSMC is light-years ahead in manufacturing, and Intel is out here trying to convince us that it can still compete. Spoiler: it can’t. At least not without a radical overhaul, and even then, the odds aren’t great.

Meaning even though Meurice and Sangi have tech analysts losing their minds over the potential (which is valid)---in my eyes, it doesn’t do anything except buy Intel more borrowed time. Sure, Meurice and Sanghi are smart hires, but they’re not miracle workers. Unless Intel can figure out how to stop playing catch-up and start leading again, this is just another chapter in the slow-motion train wreck that is Intel’s so-called “comeback.” 

(Source: MarketWatch) 

For now though, I do hope the best for Intel, but Lord have mercy, we’ve all been “hoping” for quite some time—with no results to show for it. Shares are still down -56.23% YTD, and that’s even with their massive contracts (read: Amazon) they’ve managed to seal and sign. So yeah, these boardroom additions are a cool story, and great sound bites for your Saturday and Sunday dinners—but I wouldn’t hold my breath.

Obviously, do what you will with this information, but in the meantime, place your bets accordingly friends—and as always, stay safe and stay frosty! Until next time…

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Stocks.News holds positions in Intel and Amazon as mentioned in the article.