AMD’s CEO transition is a natural next step

I just finished listening in to the conference call for financial analysts regarding AMD's CEO transition from Rory Read to Dr. Lisa Su. As usual in cases like this one, the words spoken by Read and Su were carefully chosen and partially scripted ahead of time. As a result, they didn't offer a completely satisfying answer to the questions on everyone's minds about why Read is leaving just a few short years after he took the helm at AMD. Carefully crafted statements from large companies in a time of change rarely satisfy everyone's natural curiosity. One always wonders if there is a larger story behind the official narrative.

Perhaps we'll find out about a profound internal disagreement or dissatisfaction from the board that led to Read's ouster, as happened with Dirk Meyer in 2011.

In this case, though, I think it's entirely possible the reasons behind this change are fairly straightforward. Read said in his opening statement that one of his mandates upon joining AMD was to pick a successor, and he later stated that he hired Dr. Su with that possibility in mind. Read also pointed out that, on his watch, AMD cut operational expenditures by 30%. One doesn't slash a third of the jobs (or something close to it) at a company of AMD's size without alienating quite a few people.

Perhaps Read very intentionally planned to make sweeping changes, to reconstitute AMD's leadership team and structure, and then to step away in a fairly short window.

That's essentially the picture Read painted during his talk, although he's not one to speak in direct, clear language about much of anything. He'd ask you to "reevaluate the binary condition of the wall-mounted switching mechanism" rather than to "turn off the light."

When questioned about the timing of this move, Read briefly spoke in straightforward terms. He said, "The part I'm good at, I've already done," and "Lisa is uniquely positioned for the next phase."

For her part, Dr. Su echoed Read's sentiments about the transition being part of an intentional plan. She also outlined her priorities for AMD going forward, and there wasn't much daylight between those priorities and AMD's strategy under Read. Even the likely changes she outlined—such as an increased emphasis on co-development of products with customers like AMD did with Microsoft and Sony for their game consoles—echo the strategy Read and this team revealed in early 2012. Dr. Su also emphasized that AMD's investments in new x86 and ARM cores, new graphics IP, and SoC integration are "absolutely critical" to the company's future.

Furthermore, under direct questioning, Read and Su both denied this transition was prompted by a disagreement over AMD's long-term strategy. Dr. Su said she and Rory had "really no disagreements on anything" and have been "very aligned."

If the official portrait of this transition is largely accurate, it would be unusual in the context of AMD's last two CEO transitions.

In this case, my natural skepticism is dampened by a nugget I picked up at CES back in January. It wasn't anything I could report, but a well-placed industry source suggested to me that Dr. Su would very likely replace Read as AMD's CEO "within the next six months." Of course, since this is AMD,  the schedule was optimistic, but that prediction proved accurate—and it lends credibility to the notion that this move was in the works for a while.

By practically all accounts, Dr. Su is well-suited by virtue of her experience and ability to lead AMD. If she does well, it seems likely that Rory Read's tenure will be remembered as a time when a corporate turnaround artist installed new leadership and steered the company in a positive new direction.

That turnaround is still very much in progress, though, and the most difficult stages may yet lie ahead. The K12 (ARM) and Zen (x86) cores are still in development and likely will be for another year or more. AMD will struggle to remain relevant in the CPU market until its new cores arrive. Meanwhile, AMD's graphics division has a daunting challenge to face in the form of Nvidia's ultra-efficient Maxwell-based GPUs.

Dr. Su inherits a company with a clear direction and a potentially bright future, but the next 18 to 24 months could be really rough sailing. Here's hoping she—and the rest of AMD—is up to the challenge.

Comments closed
    • sschaem
    • 5 years ago

    I believe AMD paid D. Meyer about 12 million when the AMD board fired him.

    Now we have some idea of how golden R. Read parachute really is.

    Read will continue to be paid & receive all compensation agreed to un till Dec 31
    Will receive a cash payment of $5 million on or before Jan 10th
    2.3 million of stock option will automatically be fully vested and exercisable .
    From agreed performance will receive 5.8 million stock grant.
    Will receive a 2014 cash bonus
    etc..

    I think this will come close to 27 million ?

    Lisa will start the CEO position with a $70,000 monthly base salary.
    150% cash bonus , with a $850,000 base.
    A 5 million signing bonus offer in stock grant.
    And looks like 2 pages of nice benefits possibly including a 2 million$ first year bonus?

    This might sound ‘normal’ , but for a company that keep losing money, going into debt, and shrinking in size .. this sound kind of outrageous.

    edit: and her termination plan seem like it went totally platinum… So we might look at a 40 million parachute when she is kicked out a few years from now ?

    Sanity check. AMD pays twice to executive then nvidia does. Even so nvidia is profitable and AMD is not.

    nvidia 2013 executive pay : 11 million
    amd 2013: 22 million

    AMD executive pay peaked in 2011 (one of AMS worse year) to 37 millions,
    almost triple what nvidia allocated to its execute branch.

    The more I look into this, the more its insane. AMD is being destroyed from the inside…

    R. Read was paid 15 million in 2011, Jen Hsun 6.1 million.

    OMG, this is beyond unbelievable ! considering AMD sold their offices and fired so many people at that time, just so they could keep paying a dozen of people 8 digit $$$$$$$$ 🙁

    • WaltC
    • 5 years ago

    This lady seems eminently qualified for this post, and my hope is she’ll try and restore a balance with the company’s general PC computer products. I’d love to see Papermaster pull another rabbit out of his hat–the things that might have been done if the old leadership had not made the poor decision to milk the A64 when they held such a commanding performance lead over Intel. Apparently, they ludicrously imagined that Intel would just sit back and let x86-64 AMD walk all over them in perpetuity. Instead, Intel cancelled Prescott (declined to continue milking it) and moved ahead with Core (albeit Core 32, first.) Meanwhile, AMD just sat there like a dunce, milking its lead and doing precious little to advance it–the very same crappy leadership that did the Motorola cpu division in long ago. I get sort of upset thinking about the huge window of opportunity AMD had and how they just sat there and formed and structured themselves like a company 10x larger than it was. Bad, bad mojo. Instead of pouring the money into corporate infrastructure, AMD should have been pouring it *intensely* into R&D to *make sure* that technically speaking it would *remain* a step or two ahead of Intel.

    Now that the smoke is clearing and it is becoming obvious that desktops/workstations/servers are not “things of the past” but are instead the foundation of the future, here’s hoping that AMD won’t continue to throw the store at the “mee,too” mobile markets as if nothing else existed. Turning AMD into another embedded chip company is *not* the way to go–the xBox and PS/4 contracts should convince AMD of that, if nothing else.

      • sschaem
      • 5 years ago

      She already worked at AMD for many years, and AMD biggest failure happened under her supervision.

      Look at the last 3 SoC releases, all total flops. She invested AMD to produce chips that nobody wanted to buy.
      We also see some of the worse contract terms in the past 3 years, costing AMD over half a billion in penalties.

      AMD can probably survive despite of her at the helm (after all AMD did survive hector, dirk and rorry), but I dont see AMD going anywhere but slowly follow in VIA footsteps.

      edit : listened to Sue as a CEO today and she actually might be the best candidate AMD ever selected. She sounded genuine, focused and the vibe was much better.
      She sounded like a different person… (compared to when she was a VP)

      So best of luck to Dr. Sue, and for sure AMD just performed an upgrade!

    • ronch
    • 5 years ago

    If you clicked on that link to the TR article about Dirk’s departure from AMD, it says Dirk was 49 when he stepped down. It means he was born around 1961. The Alpha 21064 (renamed 21264 in 1994 according to Wikipedia) came out in 1992. It means he worked on the 21064 before he even turned 32. Such a young engineer already worked on the world’s fastest microprocessor of the time. Amazing.

    • BIF
    • 5 years ago

    Apoo, apoo, apoo. AMD will continue to lose if they keep watering down their CPU and GPU architectures by continuing to put out watered-down hybrids of each. Unless…

    Buyout on the way.

    Microsoft?
    Oracle?
    Cisco?
    Intel?
    Bill Gates still has a lot of money I hear…
    Or Richard Branson…
    Virgin MegAPU!

      • sschaem
      • 5 years ago

      AMD is barely worth 2 billion, I think it dipped to 1.9 billion friday ?

      Seem like a deal for Microsoft. Come in swoop in and secure the GPU division.
      Sell all the rest (or dump it burn it to the ground)
      And Microsoft might actually recoup almost all that money just on the xbox1 SoC fees.

      AMD would be gone, but really it already is, but at least MS would have a decent HW division to start to rival Apple.

      • Buzz78
      • 5 years ago

      Perhaps Samsung? A well-established global chipmaker and integrator with relatively deep pockets.

    • ronch
    • 5 years ago

    Wouldn’t it be ironic if it’s a female CEO who finally manages to right AMD?

      • Peldor
      • 5 years ago

      No, it’s completely logical:
      Real men have fabs.
      If you don’t have a fab, you aren’t a real man.
      A woman is not a real man.
      Clearly, AMD should be run by a woman.
      QED

    • TheMonkeyKing
    • 5 years ago

    It would help to see where she’s been before rampant speculation. She has bachelor’s, master’s and doctorate degrees in electrical engineering from MIT. She’s spent thirteen years at IBM most notably with their semiconductor R&D labs.

    Okay, she’s an engineer and her pay is based (right now) on long term compensation payouts. So I am thinking she can give really informed opinions and direction on how the company should pursue technology; I just don’t know how well she’ll play to the crowds.

    I think Reed was the shylock the Board brought in to keep AMD from failing on just panic dumping of stock. Let’s see what she does on next year’s third quarter call — this will be the time where all the legacy products will be phasing out and her personal stamp on direction will become more apparent.

    • HisDivineOrder
    • 5 years ago

    I think as long as in January it was obvious Read was failing to do the part of the CEO job that requires one to begin doing something better.

    He was definitely good at cutting things and he cut AMD to the bone. As far as a new direction after that, he was not the man for the job. So far, his strategy has been keep the GPU division idling on GCN products they seemingly designed three years ago and have been slowly dripping out ever since. His CPU strategy is apparently APU everything while waiting on ARM to come and save the day.

    Which it won’t. Too much competition exists in ARM for it to ever be the saviour that AMD needs. If they need a miracle, ARM won’t be it.

    As a result, AMD needed someone to come in and I think the Board knew it months ago, so they set to work trying to find someone who could replace Read once all the cuts for the foreseeable future were done.

    That took nine months. They want the new boss to come in and be the one that’s adding things while leaving Read as a scapegoat and “the guy who did all the firings and layoffs and cutting.” I still don’t think Read was doing his job of actually making AMD produce better products and he needed to be gone, but I feel like he is spontaneously combusting to make Su look better.

    Unless Su does a big shift in direction, I think this might be just a head fake to try and complete an investment/buyout scenario. As long as the old guy was there, the company’s lack of progress or real improvement (besides slowing its debt generation) was going to keep it from doing anything.

    Now they go to a potential investor as a company that has made painful cuts AND has a new boss whose technical background implies she might turn it all around. “All we need is some investment,” she can say. People without awareness of the industry might even be fooled by this.

    The reality is that whatever Read set up, it’s going to take until 2016 at the earliest and later is more likely since AMD has NEVER delivered on a huge architectural change on time, not ever in the history of the company, for any headway to be made in the x86 market and by then AMD may have completely transitioned to its future as “Yet Another ARM chip maker,” which could well be the death knell of the company. That said, it is another of those bullets that you do because it’s what someone outside the industry might think is the current fad of CPU makers, right? Everyone talks about ARM this and ARM that, so being able to say you’re getting in on the ARM phenom (pun intended) makes you look better still.

    As for GPU tech, well the less said, the better since nVidia is walking all up and down AMD’s face.

      • sschaem
      • 5 years ago

      Doesn’t AMD still employee ~11,000 employee ?

      The job cut at AMD where not actually all that drastic, they still have almost 30% more people then nvidia.

      And nvidia is making a killing in design and profit. And they have undertaken so serious CPU design goals and on top have division that include cellar communications.

      But I agree, in essence a new CEO under control of the old CEO wont make any difference.

    • MarkG509
    • 5 years ago

    This pic of Rory, a few weeks back, was all I needed to see to know that he wasn’t long for the CEO world: [url<]http://www.extremetech.com/wp-content/uploads/2014/09/RoryRead-640x353.jpg[/url<] I'm not sure if it was the phony/plastic smile, the pose of his left hand, or the flowery thing in his breast pocket. But, to any future CEOs out there, please don't do this. Edit: it was his left that creeped me out, not so much his right, but that creeped me out too 🙂

      • ronch
      • 5 years ago

      He’s AMD’s jolliest CEO.

    • tbone8ty
    • 5 years ago

    Why make the change now? 7 days before earnings report?

    • just brew it!
    • 5 years ago

    Maybe she’s being set up for a [url=http://www.forbes.com/sites/womensmedia/2014/07/07/steer-clear-of-that-glass-cliff/<]push off the cliff[/url<].

      • NeelyCam
      • 5 years ago

      Interesting. Barra/Mayer examples are good – I didn’t realize this is happening.

    • ronch
    • 5 years ago

    Not entirely related, but for those of you who are curious about Dirk Meyer and where he wound up…

    [url<]http://www.prweb.com/releases/Dirk-Meyer-AMD/Ocoos/prweb10000237.htm[/url<] So it looks like Dirk spent a long time at Kokomo before being active again.

    • Nation
    • 5 years ago

    I for one hope that AMD gets it CPU business back on track and becomes relevant again versus Intel. Their graphics business feels like the only thing that helps keep them afloat.

      • ronch
      • 5 years ago

      Ironically it’s also the graphics business that sunk them neck-deep in debt.

        • kamikaziechameleon
        • 5 years ago

        Publicly traded companies existing in debt is a bit of a misnomer as they exist in a state of perpetual debt, even with cash reserves those aren’t real because as we’ve seen the companies operate separate the investors who hold the debt/stake/liability of the company. Their value is not reflecting anything tangible, there are whole industries that make money when companies perceived value (vs real value) declines… debt for publicly held companies is a myth.

        Growth in corporations is measured by market share growth, revenue growth, lateral expansion, not by profits. RARELY does a profitable traded entity ever buy back stock to consolidate its investor pool. Instead businesses sell debt on a public market to create capital to grow, you buy stock not just to acquire a piece of a company but also a piece of debt.

        Starbucks has never paid a dividend but we don’t think of them as a non profitable 20 year old company now do we??? Apple’s market value is generally 2-3 times is real value, you can’t buy a stock hoping to make money from it other than to sell it to another person who wants apple stock, your dividends to stock price ratio is horrible. Companies who own lots of assets are rarely seen as valuable by nature of their assets

        (Navistar, Chrysler, GM, Sears, etc all poorly valued relative to the piece of their asset pie you get if you buy… even if they go bankrupt an investor should recoup a portion of asset value either by a take over, liquidation, or asset sale vs an IP firm like starbucks with little or no assets).

        Growth and recognition drive investor excitement… Honestly public trading is probably the most perverse business function out there. It creates a house of cards and its regulation is rather insane, if you’ve ever sat through a class on legalities of investing through the stock market vs other investment mechanisms it seems like a mechanism created to keep most of the money out of the hands of an average stockholder. I have a IRA and 401K because I started those w/o much thought, but the ethics of stocks as they are represented today is rather dubious.

    • TwoEars
    • 5 years ago

    VIDEO:

    [url<]https://www.youtube.com/watch?v=bmrqPJigiVc#t=182[/url<]

    • ronch
    • 5 years ago

    Guys, I just found out about AMD’s secret for surviving an eternity of losses: God mode.

      • NeelyCam
      • 5 years ago

      Maybe they should hire Kim Kardashian as a product engineer?

        • Welch
        • 5 years ago

        That haven’t already? By the looks of all the flash from their PR people I thought she was spearheading at least one of the departments there.

        • ronch
        • 5 years ago

        Kim K. was actually the chief architect of Nehalem and Sandy Bridge, and had a brief tenure at IBM working on the PowerPC ISA specs.

        Oh wait..

    • Arclight
    • 5 years ago

    The first critical period will be the launch of next gen cards for consumer and professional market. Depending how they will do, it might either boost her credibility or damage it severely.

    Edit:
    Actually i forgot about the server ARM products that should be launched by the end of the year. I suppose AMD took a big gamble on those products so her first test will come before RR even finishes his work of ensuring a smooth transition.

    • brucethemoose
    • 5 years ago

    I keep hearing that AMD is in serious debt and getting deeper… People have asked this for awhile, but can they REALLY survive another 24 months?

    Their CPU division is basically screwed until the new architectures come out. The GPU division isn’t dead yet, but faces some tough competition atm, and they always seem to miss the juicy workstation/HPC markets. Meanwhile, GF keeps screwing them over, their target market isn’t getting much bigger, and they’re bleeding money from interest.

      • Meadows
      • 5 years ago

      They’ve been surviving 24 months for years.

    • ronch
    • 5 years ago

    Over at AMD’s site, it looks like [url=http://community.amd.com/community/amd-blogs/amd/blog/2014/10/02/more-than-a-decade-of-performance-amd-recognized-by-dow-jones-sustainability-index<]AMD was recognized by the Dow Jones Sustainability Index[/url<]. Quarter after quarter, year after year of losses and still here to fight another day. AMD will be with us forever. Now that's sustainability I've seen no other company match.

      • tipoo
      • 5 years ago

      “More than a decade of performance”…I had to mull over that one for a while. I guess performance can mean a lot of things 😛

    • Sam125
    • 5 years ago

    If AMD can really deliver great products over the next 3+ years then I can definitely see AMD not only becoming consistently profitable but their stock prices reaching double digits again.

    Note: I don’t own AMD or any tech stock for that matter, but if Lisa Su and the rest of AMD can pull through, those who stuck with the company are more than likely going to become rather wealthy because of it.

    Anyway, I’m looking forward to see how the next 2-3 years will unfold.

    • ronch
    • 5 years ago

    I wonder how long Su will be CEO…

      • Deanjo
      • 5 years ago

      My guess, 15 months max.

        • ronch
        • 5 years ago

        Then when she steps down too, who’ll replace her? Roy Taylor?

        • Anonymous Coward
        • 5 years ago

        Why should she do badly?

    • demani
    • 5 years ago

    [quote<]Dr. Su would very likely replace Read as AMD's CEO "within the next six months." Of course, since this is AMD, the schedule was optimistic, but that prediction proved accurate[/quote<] Comedy gold right there.

    • chuckula
    • 5 years ago

    I’ll give Lisa Su pretty much a free-pass as long as she does exactly one thing: Fire that loud-mouthed ex-Nvidia PR moron Roy Taylor. That guy has done more to make AMD look stupid in the last year than anything a whole army of Intel/Nvidia fanboys could hope to accomplish in a lifetime.

    Hopefully having a real engineer as CEO will mean that AMD’s marketing department graduates from the fourth grade.

      • ronch
      • 5 years ago

      Fire the entire marketing team. As for having a real engineer CEO, AMD already had one before, and he was also unceremoniously kicked out and never heard from again. One would think he was deep sixed.

        • Deanjo
        • 5 years ago

        Ya, I never did buy the whole “AMD needs an engineer as CEO!” rabble dabble. An engineer as CTO for sure, but for a CEO I’m not sold on that idea unless the engineering background is there to compliment an already strong CEO skill set that would be strong enough on its own.

    • GatoRat
    • 5 years ago

    AMD has brilliant engineers, but really shitty management. From what I’ve heard, they have no sense of direction and can be even more petty than your typical management.

      • Anonymous Coward
      • 5 years ago

      Its easy to have a “sense of direction” when your already successful. Its harder when no “direction” is satisfactory.

        • blastdoor
        • 5 years ago

        It might be harder but it’s also much more necessary. AMD is chronically short on resources yet they are trying to do every possible thing — client, server, x86, ARM, APU, GPU, CPU. They do not have the resources to do all of these things well. By trying to do all these things they will be lucky to be number two in any of them, and even luckier to make any money. For example, does the world really need another generic ARM A57 based SOC?

        It’s almost a cliche at this point, but it’s true nevertheless — a big part of saving Apple from extinction was Steve Jobs’ ability to cut projects that were going nowhere and focus what few resources Apple had left on doing a small number of products well. That approach is not guaranteed to succeed, but I think it’s the only approach that has the potential to succeed.

          • Anonymous Coward
          • 5 years ago

          [quote<]They do not have the resources to do all of these things well.[/quote<] I would argue that in CPU design and manufacture, failure to do [i<]everything[/i<] is just the first step on the road to failure to do [i<]anything[/i<]. Intel is free to use their high profits from the markets AMD has been driven from to go after AMD and ARM whereever it is that they can be found. Name a niche that Intel can not occupy. [quote<]a big part of saving Apple from extinction was Steve Jobs' ability to cut projects that were going nowhere and focus what few resources Apple had left on doing a small number of products well[/quote<] The iPod and descendants saved Apple, i.e. entering and redefining new markets.

      • Tristan
      • 5 years ago

      Actually wh have opposite sitution. Poor engineers cannot make revelant CPU, for three generations in a row. Their management was able to preserve this company, despite crappy products and heavy financial losses.
      Management do not dictate how to build CPU/GPU. Just hiring best available engineers, but best engineers work for Intel and NV.

        • Anonymous Coward
        • 5 years ago

        Failure to field better products than Intel is [i<]certainly not[/i<] proof of poor engineers.

        • superjawes
        • 5 years ago

        False.

        Even great engineers will deliver crappy products when they’re ordered to. For example, AMD’s CPU business strategy has shifted to focus APUs. That on its own is pulling resources away from what they should be focusing on: a complete rework of their CPU architecture.

        AMD needs to build a new CPU strategy from the bottum up. Until they do that, they will continue to slip behind Intel.

          • Anonymous Coward
          • 5 years ago

          [quote<]AMD needs to build a new CPU strategy from the bottum up. Until they do that, they will continue to slip behind Intel.[/quote<] Oh, if only dreams and willpower could save them from Intel's vast, well-financed engineering and manufacturing machine...

          • w76
          • 5 years ago

          Yep, I’m sure AMD’s executives have been saying, for every product since Clawhammer I think it was in the Athlon 64, or since, say, Intel’s E6600, “Hey, nerds, dumb it down a bit! We don’t want to be competitive, gosh!”

          I know tech sites are probably engineer-friendly, but come on. With such a long running failure, they have to take some blame.

    • sweatshopking
    • 5 years ago

    i like amd. because as a human being i enjoy watching train wrecks that never end. you just wanna see how much damage they can cause.

    KEEP IT UP AMD! I HAVE MY POPCORN!!

      • ronch
      • 5 years ago

      You’re a human being??? And all this time I thought you’re a bot.

        • sweatshopking
        • 5 years ago

        Well, human being might be a stretch, but I’m not a robot.

          • Concupiscence
          • 5 years ago

          Eh, he’s got kids, he’s people. Fist bump?

            • sweatshopking
            • 5 years ago

            ALL DAY LONG, BROTHER!

      • NeelyCam
      • 5 years ago

      [quote<] i enjoy watching train wrecks that never end. [/quote<] That's kind of evil. I doubt you enjoy watching the Ebola train wreck that's taking place in West Africa right now..

        • sweatshopking
        • 5 years ago

        Alright smarty pants. I don’t. BUT I WANTED TO POST SOMETHING IN ALL CAPS.

          • derFunkenstein
          • 5 years ago

          [url=http://www.thenation.com/sites/default/files/bush_mission_accomplished_uss_abraham_lincoln_reuters_img.jpg<]Welp...[/url<]

      • Welch
      • 5 years ago

      Go Human Beings!!! *Pierce Chimes in with Comment*

    • blastdoor
    • 5 years ago

    I keep thinking AMD is going to die, but they keep not dying.

    That’s the most optimistic thing I can think of to say about their future.

    Definitely good luck to them, though — we need them.

      • sschaem
      • 5 years ago

      They dont die, but they increase debt and dilute shareholder to survive.

      People think they are dead because what bank/third party would be foolish to lend more money. Right? But AMD seem to always find a way… at great cost.

      It seem Mudabalha is just waiting on the side line, with the checkbook open, but wanting big concession. Everything AMD beg for money, they bite another big chunk of the company slowly taking control at discount prices.

      • Kretschmer
      • 5 years ago

      [quote<]Definitely good luck to them, though -- we need them.[/quote<] Do we? Intel has been competing with itself since the Core Duo came out and has been consistently delivering. I suppose that they're useful to light a fire under Nvidia, but that's not a very exciting role to play...

        • davidbowser
        • 5 years ago

        I would ask you to recall the times when Intel (or MS, or IBM) had no competition and re-think your stance.

        It takes only a few people in the right conference room to decide “we can charge more because their are no alternatives.”

          • UnfriendlyFire
          • 5 years ago

          We have a current example: Comcast, AT&T, Verizon, TWC, and other ISPs.

          • Kretschmer
          • 5 years ago

          Intel has no competition RIGHT NOW, and arguably haven’t since the Core Duo. They need to sell better products at competitive prices or they won’t sell.

          Even at it’s zenith AMD was what…20% of industry sales? People overestimate what AMD has coaxed out of Intel (x86-64 being a notable exception).

      • kamikaziechameleon
      • 5 years ago

      corporations don’t die, they get acquired and dissolved. Even in bankruptcy there is a cannibalization of assets that happens that will see their patents and designs find their way into other companies so they live on.

        • jihadjoe
        • 5 years ago

        Sounds a lot like what nature does to living things that die.

          • kamikaziechameleon
          • 5 years ago

          True but what it takes to kill a corporation is rather amazing.

      • sschaem
      • 5 years ago

      Its like saying Matrox is not dead… So yea, its not saying much about AMD future.

      I think Intel will pickup where AMD left off. So nvidia will have to content with Intel.

      For sure in the GPU compute arena, for sure in the mobile, and anything SoC related…

      But Intel could start a gaming GPU division in an instant, or give a few billion to a Chinese government back start-up and give them their tech for gaming cards.

    • chuckula
    • 5 years ago

    [quote<]Dr. Su said she and Rory had "really no disagreements on anything" and have been "very aligned."[/quote<] "Please be a lie. Please be a lie. Please be a lie." -- AMD shareholders

    • Tristan
    • 5 years ago

    Nothing was planned or natural. Intel announced new CEO months before change, and this is natural. And, why AMD didn’t hired new COO to replace Dr Su ‘, if she ‘was planned’ to take CEO position ?

      • cal_guy
      • 5 years ago

      Lisa Su had only been COO for about four months now, and AMD hadn’t had one since 2011. Appointing her to COO was probably preparation for her to take over for CEO job. If Rory Read was fired he probably wouldn’t have participated in the conference call.

        • sschaem
        • 5 years ago

        He has stock. I think close to a million share.
        If he doesn’t make the transition smooth, a 1$ loss in share value is a million out of his pocket.

        • superjawes
        • 5 years ago

        If you can’t deliver results, you get the boot. It doesn’t matter if you’re the CEO of a company or a head coach of a football team. The only real difference is that businesses know that sometimes you can’t turn the company around before investors are out for blood, so they give a fall guy a parachute and start internal transitioning for his replacement ahead of public announcements.

        I could be wrong, but this is almost exactly what my employer did. They outed the old CEO, brought one out of retirement for six months, then promoted a new CEO once things were pretty well turned around.

        It might not have been the plan when Rory took over, but when it became clear that AMD would continue to lose money, he became the Fall Guy AMD needed.

    • shank15217
    • 5 years ago

    Its time for AMD to make a comeback, go AMD.

      • sschaem
      • 5 years ago

      Nope, she will continue on Read footstep, and Read will be her adviser for a while, to make sure she is doing it right.
      Because at AMD, everyone think Read was doing a great job . (do I need to put a /sarcasm ?)

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