Advanced Micro Devices has stated that chief operating officer Lisa Su would immediately replace Rory Read as chief executive officer as the chipmaker expands beyond its core personal computer market, sending its shares tumbling five per cent in extended trading.
The transition comes just three years into Read’s tenure as CEO and while analysts applauded the leadership change, some of them were aghast at the timing.
AMD, a perennial runner-up to Intel Corp in the business of providing processors for personal computers, has seen its market value nearly halved since Read took over in 2011 as the company lost market share to Intel.
AMD has been expanding into new markets such as game consoles and low-power servers and it aims to obtain half of its revenue from those additional businesses by the end of 2015, but progress has been too slow for many on Wall Street.
Su, 44, joined AMD in 2012 and is widely seen as one of AMD’s most valuable executives as the company expands into new markets such as ARM-based servers, digital signs and medical devices while struggling to compete with Intel in PCs.
AMD promoted Su to chief operating officer in June, increasing expectations among investors that she might eventually replace Read, although many analysts did not expect the change so soon.
The former Lenovo executive – Read – brought on new senior management team, including Su, and launched the strategy to expand its PC and server expertise into new markets.
AMD said its board was discussing with Su the terms of her employment. She is currently paid an annual base salary of $650,000, the company said.
Read, 52, will remain with the company in an advisory role until the end of the year.
