After a two-year tenure, Intel CEO Bob Swan is stepping down from his role on Feb. 15 and will be replaced by VMWare CEO Pat Gelsinger.
The chipmaker is set to officially make the announcement later on Wednesday, but sources told CNBC of the plan. Intel's stock was up around 13% on the news, while VMWare's share price was slightly down.
Swan was named CEO of Intel in January 2019 after serving as an interim chief executive. During his tenure, Intel has faced stiff competition from rivals and has been beset by delays and other production issues.
Gelsinger previously worked at Intel, and served as the company's chief technology officer at one point. Swan, on the other hand, was previously Intel's chief financial officer. Some critics of Swan have pointed out that he didn't come from a technical background.
In December, Dan Loeb-owned hedge fund Third Point urged Intel to explore strategic alternatives in the fact of losing chip supremacy to companies like AMD and Apple.
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