Shares of Intel (NASDAQ:INTC) rose today after the chip giant surprised investors this morning with the announcement that CEO Pat Gelsinger has resigned as CEO and from the board, effective December 1.

Gelsinger will be temporarily replaced by two senior executives, CFO David Zinsner and CEO of Intel Products Michelle Johnston (MJ) Holthaus.

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Investors appeared to see the shake-up as a sign of needed change, with the stock up 4.4% as of 12:16 p.m. ET. After the news was announced, the value immediately jumped in premarket trading.

Due to the immediate nature of Gelsinger’s departure, it appears as if he was ousted by the board.

Gelsinger took the reins at Intel in 2021 and was tasked with restoring the company’s leadership position in the semiconductor industry, but the stock continued to flounder under his leadership. Gelsinger’s key initiatives include a plan to open Intel’s foundry business to third-party customers and a major restructuring announced back in August. Gelsinger previously served as chief technology officer at Intel before leading VMWare and returning to lead Intel in 2021.

In a statement, he called the news “bittersweet” and admitted: “It has been a challenging year for all of us as we have made difficult but necessary decisions to position Intel for the current market dynamics.”

Frank Yeary, Chairman of the Independent Board, added: “While we have made significant progress in restoring manufacturing competitiveness and building the capabilities to become a world-class foundry, we know we still have much work to do within the company are committed to restoring investor confidence.”

Gelsinger was highly regarded by both Wall Street analysts and industry insiders, so the positive response to his departure is somewhat surprising.

Rather than offering an opportunity for a turnaround, the move could be a signal that Intel is beyond repair and the task of returning the company to its former status may not be impossible for anyone. It won’t be easy to fix the business no matter who fills Gelsinger’s shoes, and his departure also calls into question the future of strategic initiatives like Intel Foundry Services.

It’s unclear when the company will name a permanent CEO, but it could take longer than investors hope. Meanwhile, a turnaround in the business is likely to stall for now as the company awaits new leadership.

The story continues