Nokia Oyj said it was replacing Chief Executive Officer Pekka Lundmark with Intel Corp.’s Justin Hotard in a surprise announcement as the network equipment maker works to exit a prolonged slump in orders from phone operators.

Justin Hotard, Intel’s head of data-center and AI operations, is leaving to head up Nokia. Shares of the telecom-gear maker rallied over 2% in Europe; U.S.-listed Intel shares edged higher premarket.

Intel's long-term high turnover rate of senior managers holding HPC and AI-related responsibilities continues apace with today's news that Justin Hotard, EVP/GM of the company's Data Center and AI Group,