Intel AI Chief Reportedly Headed To Finnish Networking Giant, Nokia: Stock Climbs, But Retail’s Skeptical

Post Hotard’s departure, Intel’s AI business will be headed by Karin Eibschitz Segal in the interim as the company looks for a full-time replacement. Segal has recently led Intel’s Validation Engineering department.

Shares of Intel Corp. (INTC) surged more than 4% in mid-day trade on Monday after media reports suggested that the company’s artificial intelligence (AI) and data center operations head, Justin Hotard, is set to leave.

According to a report by the Wall Street Journal, Hotard is expected to join Finnish networking giant Nokia Corp. (NOK) to replace its current CEO, Pekka Lundmark. Hotard joined Intel in February last year and is expected to succeed Lundmark on Apr. 1.

Post Hotard’s departure, Intel’s AI business will be headed by Karin Eibschitz Segal in the interim as the company looks for a full-time replacement. Segal has recently led Intel’s Validation Engineering department.

Hotard’s departure follows that of Intel veteran Pat Gelsinger. While Intel has not yet announced Gelsinger’s successor, David Zinsner and Michelle Johnson Holthaus are the interim co-CEOs of the 57-year-old semiconductor icon.

Analysts at Wedbush recently trimmed their price target for the Intel stock due to the continued loss of market share in the data center segment to rival Advanced Micro Devices Inc. (AMD).

This is the same business segment that Hotard led.

Citi analysts also reduced their price target for the Intel stock to $21 from $22, citing sluggish demand across segments.

Retail sentiment on Stocktwits regarding the Intel stock was divided, straying into ‘neutral’ (48/100) territory.

However, one user tried to look at the stock with a positive lens, asking if a new CEO could actually be a catalyst for the company. That said, Intel has yet to find a replacement for Gelsinger.

Nokia’s share price barely moved despite the news, edging up 0.5% at the time of writing.

However, retail sentiment around Nokia’s shares was in the ‘extremely bullish’ (81/100) territory.

Intel’s stock has gained a little over 2.5% in the past six months, while it has lost more than half its value over the past year, with a fall of nearly 55%.

On the other hand, Nokia's stock has gained over 26% in the past six months and nearly 34% in the past year.

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