Lisa Su- the woman who transformed AMD

Posted by James Hughes -
Scope Markets

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AMD (Advanced Micro Devices) is one of the top technology companies in the world. Also, standing with pride with the names like Intel and NVIDIA.

From graphic cards powering the newest games to CPUs based on leading-edge architecture, AMD’s gaming holdings involve some of the finest hardware in the market.

However, this is not always the case, the 2000 – 2010 period was not good for AMD, since it dropped market stocks and saw its earnings fall.

Its fortunes were completely turned around when Lisa Su, a Taiwanese American business executive, and electrical engineer, was elected as CEO and company’s president in 2014. Lisa Su is the woman who transformed AMD.

Her selection proclaimed a different era for the flailing organization. She played a big part in positioning it to become the strong and popular giant it is today. AMD’s present victory is generally associated with her intelligent business know-how and good vision for the company’s future.

How Lisa Su transformed AMD? 

How Lisa Su transformed AMD?  Scope Markets

Lisa Su quickly swung into action on entering Advanced microdevices. Her first decision was to reform the organization into 2 different business associations with a distinct focus.

One group was then assigned to graphics and computing to offer PC interfaces, customer graphics, workstations, and VR. Another one, in the meantime, focused on business, and semi-system, i.e., system-on-a-chip goods, servers, gaming consoles, design, cloud gaming, therapeutic imaging tools, networking, and fixed CPUs.

Lisa Su’s plan was to ease how AMD runs by concentrating on the best technology investments via streamlining goods subdivisions, while also delving into novel and future technologies. In that way, Lisa Su transformed AMD.

 In 2013, AMD shares lost over 60% of their worth

In 2013, AMD shares lost over 60% of its worth  Scope Markets

 

 

Before Lisa Su’s approach, AMD’s possibilities were in urgent distress. Since it was in the shadow of the market heads NVIDIA and Intel.

All through 2011 and 2012, AMD laid off approx. 25 percent of its workforce to keep afloat. The takeover of SeaMicro and ATI Technologies did less to stop the descending spiral.

In 2013, AMD’s shares lost over 60% of their worth. In the same year, the cash destitute AMD scored a sale-and-rent back agreement for its Texas, Austin quad that afforded the company $164 mn in capital flow.

Market stocks were at a low point with AMD concentrating very much on throwback PC goods with reducing returns apart from the fast-growing tablet and mobile companies. Advanced micro devices hold their base next to NVIDIA when it comes to graphics cards. But the income was not adequate to sustain the other dropping wings of the organization.

Since the 4th elected CEO and leader in 6 years, Lisa Su had taken charge. She handled the huge task of raising AMD again from the verge of insolvency.

 Advanced micro devices invested money into dormant markets 

 

Apart from trying to syndicate market stocks from other firms in authorized domains, AMD will also gain success by spending in the somewhat initial large margin and increased growth markets. Lisa Su’s area of expertise was the Zen CPU design making its complete line of x86 goods.

In months of the Zen-dependent Ryzen CPUs introduction in 2017, the market share of AMD peaked at 11%. The growth extended in succeeding years since AMD drove more innovative goods to compete with both Intel and NVIDIA. Whereas making important incursions into the server market. By the first quarter, 2019, AMD had recovered approximately 30% of the CPU market stocks. Furthermore, Advanced micro devices achieved more than 30% of the GPU market by the second quarter of 2019.

 Finding out what AMD is good at 

 

Many years before Lisa Su became chief executive, AMD had decided to reduce prices by getting out of some regions of business. Also, involving spinning off possession of the factory that produced its semiconductors.

When Lisa Su took charge, a few of her most important verdicts were generally related to what not to do. Also, it was the time when Lisa Su transformed AMD.

It is very essential when you are a technology firm to determine your strengths so that you can work on being the best. This is the key element of the firm, let’s make it as prominent as possible in the sense of what we can bring to the market, but doing that also means considering the regions which would have less AMD uptake.

AMD decided not to make technology for mobiles

AMD chose not to continue making technology for mobiles or sensors for IoT machines.

Instead, the firm determined to make a huge fortune on high execution computing structure. That is involving powerful system processors and gaming graphic chips, AI, supercomputing, and other technologies. Advanced micro devices were making fast and strong chips, and usually underpricing their opponents on cost.

The tactic was particularly significant for an organization that, at the moment, was fighting to make a mark in an area where the enterprise was controlled by small key opponents.

Advanced micro devices and their products 

AMD’s goods are so valuable that the Department of Power in the US selected AMD’s microchips to control its supercomputing project in Tennessee. Its technology would also assist in powering the future Exascale category supercomputer in the national laboratory at Lawrence Livermore. This lab is a type of high-performance system essential for atomic deterrence. One big solution provider that Advanced microdevices are making a partnership with, as per Mooneyham, is Worldwide Technology, on CRN’s 2020 Solution Provider’s 500 lists. It is a Maryland Heights-based firm that has a vital and longstanding tactical alliance with Intel, which involves continuous investments in its ATC.

 AMD and its competitor Intel

AMD and its competitor Intel Scope Markets

Since Lisa Su was improving AMD, its big competitor, Intel, was faltering.

Intel fought to shift from a 14-nanometer chip to a shorter, more robust 10-nanometer microchip. In that tough transition, Intel’s stock of 14 nm microchips employed in PCs failed to fulfill needs the previous year. That is a problem that pushed it to issue an important public acknowledgment in Nov. when AMD released a processor equal in power to the 10 nm microchip ahead of Intel. AMD also produced a product structure that lets it keep charges low.

Intel’s difficulties have made it much easier for Advanced microdevices to grab a bigger part of market stocks in main regions.

The data center market has turned into a preference for AMD since an increasing number of firms look to change their business operations to the cloud and as data accelerates next-gen technologies such as 5G, start to grow.

It is a business niche that could show a $20 to $30 bn profit for semiconductor firms in the next few years, as per Mosesmann.

Lisa Su’s impact in a male-dominated industry cannot be understated 

Lisa Su’s impact in a male-oriented industry cannot get understated Scope Markets

 

Now, AMD is mentioned together with Intel and NVIDIA in any talk regarding the leading gaming hardware producers. This is because Lisa Su transformed AMD in such a way that it’s challenging Intel and NVIDIA.

In the CPU market, the story is no longer related to Intel ruling, but more about AMD vs. Intel. This is because the two fight to make the market’s starting products.

In addition, AMD is offering the Zen 2-dependent CPU and RDNA 2 GPU for the PlayStation 5 and Xbox Series X gaming consoles.

AMD luck can be accredited to Lisa Su’s decisions. Her continuous leadership and vision signify that she now commands one of the gaming niche’s leading organizations.

Her impact in changing the conventional formation of male-dominated official teams cannot be overlooked. Her time as the head of AMD has been a significant part in assuring the hardware gaming niche stays as contentious and productive as it is today. She is setting the best example for more modern women within the technology and gaming world.

What challenges are ahead for AMD? 

What challenges are in front of AMD?  Scope Markets

 

Since AMD is on an up trajectory, the chip producer has enough work cut out for it.

A high-performing computing practice builder manager, who requested to remain anonymous, stated AMD would need to fight with the full and expanding associate programs operations by opponents Nvidia and Intel. Intel Associate Alliance, a novel combined program, introduced in 2021, would bring many associates of diverse types. Whereas Nvidia Associate Network went beyond 1,500 associates from 2020 to the present.

After AMD’s growing straight coverage of top state and local solution providers, the chip producer intends to proceed to enter a wider channel for segment and business systems associates via its approved merchants, although the 2 niches are kept separate.

The other region of interest for Advanced microdevices, which has been getting called by co-workers and Wall Street interpreters, is to what degree the chipmaker can continue to run. Since it ended its large, $35 bn takeovers of programmable chip producer Xilinx, which is all set to happen in late 2021.

 Conclusion- Lisa Su- the woman who transformed AMD

COVID-19 — and the harm it has done to markets all over the world — has put queries related to what the future involves for various organizations. But it has been generally predicted that semiconductor organizations would likely profit from the fact that their production procedures are very much automated.

When Su joined as CEO of AMD in 2014, its shares were hitting an all-time low.

In Dec.2020, CEO Lisa Su sold 150,000 shares of AMD at the medium price of $92.89. During this time, the stock price has reduced by 1.32%, however, AMD still has room to improve in the upcoming years, said Lisa Su.

In an interview with John Pitzer, a Credit Suisse analyst, AMD’s CEO Lisa Su said that we see the year 2021 as a growth year for Personal computers.


REFERENCES

• https://www.talentedladiesclub.com/articles/how-one-woman-turned-around-the-fortunes-of-global-tech-firm-amd/
• https://edition.cnn.com/2020/03/27/tech/lisa-su-amd-risk-takers/index.html

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