Shares of Intel (INTC 4.32%) were moving higher today after the chip giant surprised investors this morning by saying that CEO Pat Gelsinger has retired as CEO and from the board of directors, effective Dec. 1.

Gelsinger will be replaced on an interim basis by two senior leaders, CFO David Zinsner and CEO of Intel Products Michelle Johnston (MJ) Holthaus.

Investors seemed to see the shake-up as a sign of necessary change as the stock was up 4.4% as of 12:16 p.m. ET. It jumped immediately in premarket trading after the news was announced.

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Gelsinger is out

Based on the immediate nature of Gelsinger's departure, it seems like he was pushed out by the board.

Gelsinger took the helm of Intel in 2021, tasked with reestablishing its leadership in the semiconductor industry, but the stock continued to falter under his stewardship. Gelsinger's key initiatives include a plan to open Intel's foundry business to third-party customers and a massive restructuring announced back in August. Gelsinger had earlier served as chief technology officer at Intel before leading VMWare and returning to run Intel in 2021.

In a statement, he called the news "bittersweet" and acknowledged, "It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics."

Independent board chair Frank Yeary added, "While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence."

What's next for Intel

Gelsinger was highly regarded by both Wall Street analysts and industry insiders so the positive response to his departure is somewhat surprising.

Rather than an opportunity for a turnaround, the move could signal that Intel is beyond repair, and the job of returning the company to its earlier stature could be impossible for anyone. Fixing the business won't be easy no matter who fills Gelsinger's shoes, and his departure also calls into question the future of strategic initiatives like Intel Foundry Services.

It's unclear when the company will name a permanent CEO, but it could take longer than investors hope. In the meantime, any turnaround in the business is likely to be stalled for now as the company awaits new leadership.