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Intel Corp., fresh off the abrupt departure of Chief Executive Officer Pat Gelsinger, stuck with its current financial forecast during a presentation Wednesday while also saying it would keep a tight rein on capital spending.
"We stand by the guidance that we gave at earnings," Chief Financial Officer and interim Co-CEO Dave Zinsner said during the UBS Global Technology and AI Conference on Wednesday. He also said that Intel's "core strategy" remains intact.
Still, he and Intel executive Naga Chandrasekaran offered a vision for the company that included a more conservative approach to capital spending - something that had been a concern for investors during Gelsinger's tenure.
"There's a significant cultural change that has to happen," said Chandrasekaran, a Micron Technology Inc. veteran who oversees Intel's manufacturing operations and supply chain. The company previously made as many chips as were needed to satisfy demand, an approach Chandrasekaran called "no wafer left behind." Intel now needs to embrace the attitude of "no capital left behind," he said.
Intel announced Gelsinger's retirement on Monday, less than four years after he took the job. His departure came after the board gave him the option to retire or be removed, Bloomberg reported earlier, citing people familiar with the matter. Last month, the company said that sales would be $13.3 billion to $14.3 billion in the current quarter, compared with an average analyst estimate at the time of $13.6 billion.
At the UBS event, the executives said that Intel would continue Gelsinger's strategy of turning the company into a "world-class" foundry - a maker of chips for outside clients. Intel also has no concerns about its Chips Act grant, Zinsner said. The Santa Clara, California-based company is set to get about $7.9 billion in awards as part of a federal program meant to revitalize the domestic semiconductor industry.
"It's an ironclad agreement," Zinsner said. He also noted that much of the Chips Act incentives will come in the form of tax credits, rather than grants, and the incoming Trump administration "values manufacturing."
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