Intel's shares decline after Gelsinger departure, leaving the chipmaker without a quick solution.

• On Tuesday, Intel's shares dropped over 5% following the announcement of CEO Pat Gelsinger's dismissal the previous day.
• Analysts at Cantor stated in a client note that the company's difficulties are not due to Gelsinger and "we do not anticipate a rapid resolution."
• Intel has lost more than 50% of its value this year.

On Tuesday, the shares of the embattled chipmaker fell more than 6% after the company announced the removal of CEO Pat Gelsinger, whose four-year tenure was marked by market share losses and a major miss in artificial intelligence.

Early afternoon trading saw the stock's value drop, with it on track for its worst day since early September. This year, the stock has lost more than half its value.

On Monday, Intel announced that CFO David Zinsner and Intel products CEO MJ Holthaus would serve as interim co-CEOs while the board and a search committee work quickly to find a permanent replacement for Gelsinger. Longtime board member Frank Yeary will serve as interim executive chair.

Intel's challenges cannot be resolved by any one leader, according to Cantor analysts, who wrote in a note to clients on Tuesday that Gelsinger is not responsible for the company's struggles and "we simply do not see a quick fix here." The firm has given Intel a hold rating on its stock.

In the latest quarter, Intel's revenue decreased by 6%, marking the tenth consecutive year-over-year decline. Meanwhile, a rival chipmaker has surpassed $3 trillion in market value and is driving the growth of artificial intelligence, with tech giants like Amazon, Meta, and Alphabet rapidly purchasing the company's graphics processing units.

Nvidia's CEO, Jensen Gelsinger, has been at the helm during the company's rise, which has coincided with a loss of market share in Intel's core PC and data center business to AMD. At the same time, Intel has refocused much of the company into becoming a foundry, manufacturing processors for other chipmakers. This costly proposition, which the company announced in September, would lead to the foundry becoming an independent subsidiary, enabling it to raise outside funding.

"Chris Danely, an analyst at Citi Research, stated on CNBC's "Money Movers" on Monday that the foundry business is still causing a lot of the problems that have been recently occurring, with the company losing billions every quarter."

Danely stated that the clock began ticking on Pat when the foundry business experienced significant margin shrinkage during the summer.

In August, Intel's stock dropped 26% after its second-quarter earnings report, marking its steepest decline in 50 years and the second-worst day ever. Gelsinger announced at the time that the company was cutting 15% of its workforce as part of a $10 billion cost-reduction plan.

Cantor analysts say more cuts are likely waiting for Gelsinger's eventual successor.

"They predicted a more aggressive cost-cutting strategy and expedited sale of non-core assets, but this does not address the foundry problem, which is the lack of high volume external customers."

— CNBC's Rohan Goswami and Kif Leswing contributed to this report

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