A few happy and a few sad! Gelsinger takes over Intel CEO’s old club VMware, Dell down more than 6% | Anue Juheng-US Stocks

Intel threw a shock bomb on Wednesday (13th), announcing that CEO Robert Swan would step down and be replaced by VMware CEO Pat Gelsinger, and VMware and Dell (Dell Technologies), which he holds nearly 80% of the shares, were attacked on Wednesday. The market sold off and both fell by more than 6%. Wall Street was also concerned about the valuation of the two companies.

Gelsinger takes over Intel (INTC-US) After the announcement of the CEO, on Wednesday VMware (VMW-US) The stock price fell 6.79% to 133.2 per share USD, Dell shares fell 7.19% to 71.23 per share USD, While Intel’s stock price rose 6.97% to 56.95 per share USD。

Computer manufacturer Dell (DELL-US) It was confirmed last year that it was considering splitting its VMware’s shares to current Dell shareholders, so VMware had to pay Dell a large cash dividend to ease Dell’s huge debt.

Now, as VMware loses its CEO, Wall Street is beginning to worry about VMware’s valuation. The value of Dell’s holdings in VMware is almost equal to the market value of the entire Dell, so the quality of VMware’s operations will affect Dell.

William Blair analyst Jason Ader downgraded VMware’s rating on Wednesday. He said that VMware’s chief operating officer Rajiv Ramaswami and head of cloud management Ajay Singh were recently poached by other technology industries. Coupled with the departure of the chief executive, VMware’s leadership will appear hollow. , May cause major damage to the business and organization.

BMO Capital analyst Keith Bachman believes that Gelsinger has not gained enough credibility as an important role in weighing the interests of VMware and Dell. His departure is definitely not conducive to VMware’s stock price. It is unclear who can take over his role.

Engaging Gelsinger is a big plus for Intel. Patrick Moorhead, an analyst at Moor Insights and Strategy, said that Gelsinger’s external experience will help him solve some of Intel’s problems in the future. His excellent management characteristics such as strong and motivating are in line with Intel’s current management characteristics. need.

Gelsinger worked at Intel for 30 years and was the company’s first chief technology officer. Since 2012, he has served as chief executive officer of VMware and chief operating officer of EMC. He is also one of the well-known talents in the technology industry. He appeared in Microsoft (MSFT-US) In the candidate list of CEO, it was reported that Intel will serve as CEO in the same year.