Intel loses AI chief to Nokia as the head of its artificial-intelligence operations moves to the top job at Nokia. This change follows the sudden retirement of former Intel CEO Pat Gelsinger. Despite this shift, Intel’s chip stocks have surged by +8.5%, signaling optimism for investors. Nokia’s stock has also experienced a slight increase (+0.02%).
This development could prove to be a turning point for both Intel and Nokia, where Intel may find a new direction in its artificial-intelligence strategy, while Nokia may benefit from the leadership associated with this important position.
Justin Hotard leaves Intel, moves to Nokia
Justin Hotard, executive vice president of Intel’s data center and AI (DCAI) group, is now going to become president and CEO of Nokia. He will replace Pekka Lundmark on April 1. Before joining Intel, Hotard worked as executive vice president of high-performance computing and AI at Hewlett-Packard Enterprise.
With his leadership at Nokia, the company may get a new direction in AI and high-performance computing. This change may lead to new opportunities for both companies, especially in technological development.
Nokia Appoints Justin Hotard, Reported to Be Leaving Intel
Sari Baldauf, Chair of Nokia’s Board of Directors, praised Justin Hotard’s deep understanding of the AI and data center markets and track record of driving rapid growth in a press release. Hotard’s experience is seen as particularly valuable for Nokia, which will now face new technological growth opportunities.
An Intel spokesperson told Barron’s that Hotard’s role will be temporarily filled by Karin Ebschitz-Siegel, an executive with nearly two decades of Intel leadership experience. He will serve in the position until a permanent replacement is found.
Intel statement: “We have a strong DCAI team,” continues growth after Hotard’s departure
Intel said in a statement, “We have a strong DCAI team that will continue to advance our priorities in serving our customers.” It praised Justin Hilton’s contributions and wished him well in his new role. Shares of the chipmaker rose 4% to $19.86 on Monday, a positive sign for the company.
Hotard’s exit is the latest step in a series of changes at Intel. Earlier, Pat Gelsinger, who was associated with Intel for more than 40 years, announced his retirement on December 1 and also resigned from the company’s board.
Did Intel’s struggling foundry business play a key role in the CEO’s departure?
Analysts pointed to Intel’s foundry business, which makes chips for the company and external clients, as a key reason behind the retirement of the company’s CEO, Pat Gelsinger. In 2024, the foundry reported revenue of $17.5 billion, down 7% compared to 2023. This decline has become a cause of concern for Intel, and its impact may force the company to rethink its strategies.
Nvidia’s lead and Intel’s challenge: Can in-house foundries help?
While Nvidia has outpaced Intel in making chips for AI, it relies on Taiwan Semiconductor Manufacturing (TSMC) to make advanced chips. This means that Intel’s own in-house foundries could potentially give it a competitive edge. However, Intel’s foundry business has not yet taken on a large scale, forcing Intel to outsource some production to TSMC. This situation shows the need for new strategies and improvements for Intel.
