For much of its existence, Advanced Micro Devices (AMD) has been overshadowed by its more famous competitor, Intel. However, in recent years, AMD has made significant strides in narrowing the performance gap between itself and Intel, and it all comes down to CEO Dr. Lisa Su’s leadership. Since she took over at AMD in 2014, Su has helped lead the company through some key acquisitions and product launches that have put AMD back on the map as a key player in the computing market.
Related media: How Lisa Su Turned Around AMD
#1. The Problem At Hand
Intel had been dominating AMD for many years because of its market share and technological lead. However, in 2014 as Dr. Su took over as CEO, she was determined to turn around AMD’s situation by making it competitive once again.
This would involve improving internal operations and gaining positive relationships with its key strategic partners. Dr. Su believed that there were significant growth opportunities in key areas like cloud computing and virtual reality if only there was an innovative strategy to exploit them.
#2. Success Strategy
Dr. Su has had a tremendous impact on AMD’s management strategy. After years of financial losses and dwindling market share, Dr. Su has brought renewed focus to sales and strategic alliances. She quickly identified two core areas for growing market share: gaming consoles and emerging markets. She established relationships with Sony for PlayStation 4 design wins, which boosted quarterly revenue by 18 percent in 2015.
In addition, she has made significant progress toward penetrating new markets such as China and India. Her success at implementing these strategies is reflected in AMD’s stock price, which increased more than 400 percent since her appointment as CEO.
#3. AMD’s Present Status And Future Objectives
By 2022, AMD expects to have doubled its share of processors used in data centers and cloud servers and have a 35 percent share of the market for discrete graphics cards, even as Intel and Nvidia step up their challenge. The compony’s CEO has expressed her confidence in her team to compete.
It’s safe to say that AMD’s story is looking bright. Investors and developers are both optimistic about how much room there is to grow, as management applies its winning strategy of focusing on products and markets where it can shine — and pulling out of those where it can’t.
As Dr. Su puts it, “We will invest our resources into areas that we believe we can win in.”
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Written by: Kwaku Boachie Fosu, Sat, June 18, 2022.