(Bloomberg) — Intel Corp. rallied Monday after tapping Micron Technology Inc. Chief Financial Officer David Zinsner to fill the CFO role vacated by the retirement of George Davis.
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Zinsner starts the job on Jan. 17, the chipmaker said in a statement. Intel had already announced the retirement of Davis, who will stay on in an advisory role until May. The 53-year-old Zinsner will report to Intel Chief Executive Officer Pat Gelsinger and oversee the company’s finances as it tries to regain its once-dominant hold on the semiconductor industry.
Zinsner’s appointment is the latest shake-up of Intel’s senior leadership undertaken by Gelsinger, who rejoined the company last year. Intel’s new CFO was at Micron for almost four years following a career in financial positions at other technology companies. In naming him to the role, Gelsinger cited Zinsner’s “deep knowledge of semiconductors and manufacturing, capital allocation discipline, and a track record of value creation.”
The shares gained as much as 5.7% to $58.38 in late trading following the announcement. Micron, meanwhile, slipped as much as 3.1% to $91.
“Given Mr. Zinsner’s track record and investor perception, we think this news is justifiably being taken as an Intel positive,” Wells Fargo analyst Aaron Rakers said in a note to clients.
Gelsinger’s appointee will shoulder the burden of explaining to Wall Street how his boss’s turnaround plans will affect Intel’s finances. The CEO has said that the company is in an “investment phase” as it tries regain leadership in manufacturing and expand into new markets. That will act as a drag on the company’s profitability, Gelsinger has said.
Separately, Intel said Michelle Johnston Holthaus will take over leadership of its biggest business unit, the Client Computing Group. Holthaus, who has spent 25 years at Intel, replaces Greg Bryant, who’s leaving at the end of January “for a new opportunity,” the company said.
Holthaus will transition to her new role over the coming months. The chipmaker is looking for a replacement for her as head of sales, marketing and communications.
(Updates with other management change in seventh paragraph.)
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