Intel, one of the leading chip makers, has announced the appointment of Justin Hotard as the new general manager and executive vice president of its data-center and AI group. Hotard, a former executive at Hewlett Packard Enterprise, will take on the role from February 1.
Intel has been actively searching for a new leader for its AI unit since October of last year when Sandra Rivera moved to head up the company's Programmable Solutions Group, which will be spun off in the coming years.
This appointment comes at a critical time for Intel as it faces fierce competition from Nvidia and Advanced Micro Devices (AMD) in the rapidly growing AI market.
Intel has struggled to keep up with both Nvidia and AMD in the graphics processing market for AI workloads, with its revenue declining by 21% in the first three quarters of 2023 and suffering an operating loss of $2.5 billion.
Despite these challenges, Intel's stock experienced its best annual increase in two decades, rising by 91% in 2023. However, it still fell behind AMD's impressive 132% rise and Nvidia's remarkable 240% surge.
The new year has brought a reversal of fortune for semiconductor companies, with Intel stock falling by 6.4% in the first two trading days. However, the shares rebounded by 1.3% early Thursday, possibly due to optimism surrounding Hotard's appointment.
Meanwhile, Nvidia's stock was up by 0.7%, while AMD experienced a 1% increase.
In conclusion, Intel's decision to bring Justin Hotard onboard signifies its determination to compete in the AI space, where it has fallen behind its rivals. Hotard will undoubtedly have his work cut out for him as he leads Intel's efforts to catch up with Nvidia and AMD.
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