Gelsinger is now CEO of software firm VMware but spent 30 years at Intel and also served as chief operating officer of EMC's Information Infrastructure Products division, the company said.
Shares of Intel surged about 10 per cent as the chipmaker named VMware head Pat Gelsinger as its new chief executive, replacing Bob Swan after pressure from activist investors. Intel's stock has risen by around ten percent following the news, while VMWare's fell slightly.
Intel acknowledged in late December that it had received a letter from the NY fund and was working with it on ideas "regarding enhanced shareholder value".
Intel spokesman William Moss said Wednesday the changeover "was not driven by Third Point".
In mid-2020, Intel disclosed that there would be a substantial delay in its development of a next-generation chip-making process already in use by a major Taiwan supplier, TSMC.
The company's shares were up almost 10 per cent in early trading.
Apple also dealt a blow to Intel previous year when it began replacing Intel processors with Apple-designed chips on new Mac computers. Mr. Gelsinger had been the CEO of VMWare since 2012.
"Having begun my career at Intel and learned at the feet of Grove, Noyce and Moore, it's my privilege and honour to return in this leadership capacity", Gelsinger said in a statement.
Swan was made interim chief executive in 2018 and appointed permanently the next year after his predecessor Brian Krzanich resigned over a relationship with an employee that violated a company non-fraternization policy.
During Swan's tenure, Intel has faced a range of considerable setbacks. After a search, Intel confirmed Swan as CEO in early 2019.