Intel CEO Pat Gelsinger has retired, the company said on Monday, following a tumultuous period for the chip pioneer that has struggled to keep up in the AI era with players like Nvidia dominating the market.

The company named Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus as interim co-chief executive officers while its board conducted a search for a new CEO.

Shares of the company rose nearly 5% in premarket trading. They have lost more than half of their value this year.

Gelsinger was appointed as CEO in 2021 to spearhead a transformation of the chipmaker which was once at the helm of the U.S. semiconductor industry but ceded its manufacturing lead to players like Taiwan's TSMC.

"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," Frank Yeary, independent chair of the board, said in a release.

Under Glesinger, Intel undertook a costly turnaround centered around making the company a contract manufacturer for other chip firms and reinvigorating its technological lead.

The company's board has formed a search committee to appoint Gelsinger's successor.

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