• Analysts at Bank of America wrote Monday that Intel is more likely to split its operations after announcing the unexpected resignation of CEO Pat Gelsinger.

• Gelsinger has been a proponent of combining Intel’s own manufacturing and contract manufacturing businesses as part of its turnaround efforts.

• The analysts said a breakup of Intel still faces a number of hurdles, including conditions posed by nearly $8 billion in federal CHIPS Act funding announced last week.

Intel (INTC) could cease operations after announcing the sudden resignation of CEO Pat Gelsinger on Monday, according to analysts at Bank of America.

Analysts wrote Monday that Intel’s internal manufacturing business and its foundry business, which makes chips for other companies, are now more likely to be separated as the outgoing CEO advocated for keeping them together.

Such a restructuring would still face a number of hurdles, such as the conditions attached to nearly $8 billion in federal CHIPS Act funding announced last week. BofA analysts said the financing agreement requires Intel to retain at least a 35% stake in its foundry business.

“Both companies have their own strategic, structural, financial and competitive issues and there is no near-term solution in sight,” the analysts wrote, maintaining their “underperform” rating and $21 price target on the shares. Intel shares ended Monday slightly in the red.

While Intel shares have lost more than half of their value since the start of the year, some of the company’s few bright spots have come from reports of potential investments or takeover offers, or the chipmaker selling off some of its assets.

Bloomberg And Reuters reported on Monday that Gelsinger met with the chipmaker’s board last week to express his concerns about the company’s turnaround efforts and its progress in catching up with rivals like Nvidia (NVDA) – and was reportedly given the choice of retiring or being fired.