As mentioned earlier,
Intel's (
INTC) head of manufacturing,
Stacy Smith, a 30-year company veteran,
is retiring in January, and while there hasn't been a lot of commentary since the announcement last night, the commentary so far is not positive.
In addition to
RBC's
Amit Daryanani,
Rosenblatt Securities chip analyst
Hans Mosesmann is not encouraged by the development, calling it "highly negative" for Intel.
"The update is unsettling," writes Mosesmann, who has a Sell rating on Intel shares, "given Mr. Smith was in direct line-of-sight to be the next CEO of Intel, and it is after the announced leave of absence of
Diane Bryant, head of the data center unit back in May."
Mosesmann professes to be "surprised at the relative silence by the street on this organizational change at Intel, particularly since Mr. Smith has not ended his professional ca- reer by any means."
This is ominous for the chip maker, he suggests:
Our take – The notion forwarded by some that the timing of Mr. Smith’s depar- ture (with no apparent replacement) is not related to Intel’s business is, dare we say, naïve. Nothing happens in the Valley at this level by happenstance. The departure is highly negative for Intel and suggests an organization that is in flux in the midst of the most important opportunities and threats in the company’s history.
Intel shares traded up a penny to close at $34.66, and were down two cents in late trading.
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