Shares of Intel (INTC 0.70%) were spiraling again last month as the surprise "retirement" of former CEO Pat Gelsinger offered more evidence of the disarray the company is in as it struggles to keep pace in the booming chip sector.

Investors have grasped on to hopes of a recovery, but the CEO ouster is the latest evidence of steep challenges at a time when the company can ill afford to fall behind.

As a result, the stock finished the month down 17%, according to data from S&P Global Market Intelligence. As you can see from the chart, the stock plunged shortly after the CEO announcement, and stayed down from there, falling again after the Federal Reserve trimmed its rate-cut forecast for 2025.

INTC data by YCharts

Intel goes from bad to worse

Investors initially reacted favorably to the news that Gelsinger was stepping down, though it didn't take long for that shine to wear off, and investors seemed to realize the plan to replace him was lacking.

Intel named two interim co-CEOs in Gelsinger's place, CFO David Zinsner and Michelle Johnston (MJ) Holthaus, the CEO of Intel Products. The move leaves Intel without a permanent leader when it's in the middle of a massive transition, having said it would lay off 15% of its workforce in August, as it's in the midst of a years-long pivot to a new foundry model that opens up its factories to outside customers.

Pushing Gelsinger into retirement without a replacement leaves the company without leverage in executive negotiations, and the position could be a tough sell, given the struggles of the business, the floundering stock price, and its transition to the foundry model.

Therefore, it's not surprising that the company hasn't filled that position more than a month after Gelsinger's departure.

What's next for Intel?

Intel did make some other moves last month, including adding two new board members, and rumors swirled that it could fully spin off the foundry business. However, the negative media attention around the company's efforts to find a new CEO also seemed to weigh on the stock.

Shares have been flat to start January, as The Wall Street Journal piled onto the criticism, saying that the company is losing market share in multiple areas and has even fallen behind AMD in data center revenue.

Investors also shrugged off the release of the company's latest AI PC chips at CES in Las Vegas this week, while Nvidia won most of the attention.

There's no question Intel is in a deep hole at this point. A gifted leader may be able to dig the company out, but it seems like the company's problems will get worse before they get better, if they ever do.