Intel Corporation (NASDAQ:INTC) just named Brian Krzanich as its new CEO earlier this month, but he’s already making sweeping changes at the chip maker. Last week he promised rapid mobile growth, and today, we’re already getting a glimpse of the direction in which he’s taking the company.

intel brian krzanich

Analyst Doug Freedman at RBC Capital Markets issued a report to investors today highlighting some of the changes Krzanich is already making at Intel Corporation (NASDAQ:INTC). He said the changes will help streamline some of the most important business making decisions and create more autonomy for managers. In addition, he predicts that the entire direction and perception of Intel will shift under Krzanich.

Organizational Changes at Intel

Freedman pointed to one of the chip makers’ recent 8K filings, which shows several organizational changes that are happening at the company. Of course the filing did not include complete details, but it did reveal a little bit about what Krzanich is doing.

It said that David Perlmutter, who’s the general manager of the company’s Architecture Group, is heading up a transition team for management. Perlmutter is also expected to take another role that will be named later.

After the transition, both the businesses and engineering groups which fall under the company’s Architecture Group will report straight to Krzanich. That includes Intel’s Datacenter and Connected Solutions Group and PC Client Group.

Shortening Intel’s Decision Making Process

Freedman said Intel Corporation (NASDAQ:INTC) appears to be bringing Krzanich closer to the company’s business group operations, which should speed up the decision making process at the chip maker. It brings group managers a layer closer to Krzanich.

Expanded Responsibilities For Intel Executives

The new organizational structure also expands and focuses the responsibilities of key executives at Intel. Renee James, who was appointed president of the company recently, will now head up the company’s Technology Manufacturing Group and handle the company’s relationship with Samsung. In addition, she will also work in corporate strategy and human resources.

Mike Bell, who heads up Intel’s New Devices Group will begin focusing on developing new technology. Also CFO Stacy Smith will have expanded duties, including a greater role in the company’s Intel Capital arm.

Intel Moving In The Right Direction

Freedman believes Krzanich is making the right decisions and moving the company in the right direction. He sees Intel Corporation (NASDAQ:INTC) as “placing increasing emphasis on software while transforming into a more vertical company.”

In addition, he expects the company’s gross margins to lift and possibly be even better than expected in the second half of this year. In his view, Wall Street is “underestimating the magnitude of gross margin compression that has resulted from the additive impact of multiple quarters of both start-up and excess inventory charges.”

He also sees upcoming traction in mobile, as Krzanich has promised, complete with a “magnitude of design wins” that may surprise investors. He also admits that PC sentiment is at its lowest level ever, but he believes that lower price points and shorter replace cycles could curb the expected 5 percent year over year decline. He said the near-term future of PC sales poses the biggest risk to his estimates for the company.

Freedman kept his Outperform rating and $29 per share price target on shares of Intel Corporation (NASDAQ:INTC).