Advanced Micro Devices Inc. (AMD) announced it would consolidate its disparate business groups into two segments as it copes with declining demand for personal computers. The company said it would combine its client, consumer and professional graphics businesses into a computing and graphics group. AMD’s server and semi-custom businesses will be folded into an enterprise, embedded and semi-custom group.

In April the company reported that its first-quarter loss narrowed as sales increased 28% on strong demand for its graphics and visual solutions products.

As part of the reorganization, the company named Lisa Su to the newly created chief operating officer position, a move that some industry experts view as an indication that the former IBM and Freescale Semiconductor executive is being groomed for the CEO position.

Su joined AMD in January 2012 as senior vice president and general manager of the company’s Global Business Units. AMD said it is merging its Global Business Units with Sales and Operations to form a single organization led by Su, which will be “responsible for all product strategy, execution, sales, and day-to-day operations.”

Su herself will be the interim lead of the new Enterprise, Embedded, and Semi-Custom Business Group, while former head of AMD’s Sales organization, John Byrne will head up the Computing and Graphics Business Group.

“The reorganization is all about increasing top-line growth, something AMD can and has to do now that they are more stable. It also clearly puts Lisa Su in as the heir apparent to the CEO spot,” said Moorhead, principal analyst for Moor Insights & Strategy.

Su came to AMD from Freescale, where she was a senior vice president from June 2007 to December 2011, leading the company’s Networking and Multimedia business and serving as chief technology officer. She spent 13 years at IBM, putting together an impressive track record of leadership in technology development in semiconductor and hardware-related work groups.

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Wayne Thorp
ABOUT THE AUTHOR:

Wayne A. Thorp, CFA, is editor of Computerized Investing and a vice president and the senior financial analyst at The American Association of Individual Investors (AAII). He is also the program manager for AAII's Stock Investor Pro fundamental stock screening and research database program and is on the advisory boards of AAII's Stock Superstars Report and Dividend Investing newsletters. He holds the Chartered Financial Analyst (CFA) designation and is a 1997 honors graduate of DePaul University in Chicago. Wayne's interests include stock screening, technical analysis and charting, social media and tech gadgets. However, in the summer he'd prefer to be hip-deep in northern Michigan's Manistee River fly-fishing for rainbow trout.

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