Advanced Micro Devices (NASDAQ:AMD) CEO Lisa Su Recognized as CEO of the Year

Lisa Su, CEO of Advanced Micro Devices (AMD), has been honored as CEO of the Year by Time Magazine for her transformative leadership over the last decade. When Su took charge, AMD's stock was about $3, and its share in the data-center chip market was minimal. Through a complete redesign of products and enhanced customer relations, Su leveraged the AI boom, pushing the company's value beyond its historical competitor, Intel (NASDAQ:INTC), for the first time in 2022. AMD's stock has since surged to approximately $140.

Harvard Business School Case Study

Harvard Business School has included Su's management of AMD as a case study, emphasizing her success in reshaping the semiconductor firm. However, AMD remains second in the semiconductor sector, trailing Nvidia (NASDAQ:NVDA), which has emerged as the most valuable company worldwide under the leadership of Su's cousin, Jensen Huang. Nvidia currently holds a 95% share of the AI data-center GPU market as of the third quarter of 2024.

Workforce Restructuring

In November, AMD announced a layoff of 4% of its global workforce as part of a restructuring aimed at enhancing focus on AI opportunities. This occurs amid large tech companies like Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN) developing their specialized AI chips, which may reduce reliance on AMD's products.

Challenges Ahead

AMD faces external challenges, including advances in AI, the geopolitical situation in Taiwan (where most of its top chips are made), and the potential implications of U.S. President Trump's industry policies.

Su, recognized for her strategic skills and exacting leadership, prioritizes training future leaders. Her rigorous strategy includes weekend meetings, early morning discussions, and direct involvement in product testing. Patrick Moorhead, a tech analyst and former AMD executive, suggests Su's management style may not fit everyone but proves effective for those who meet her demanding standards.

Future Prospects

As the AI industry shifts toward optimizing inference chips, AMD is likely to benefit from its competitive products regarding speed and energy efficiency. Su is also nurturing an informal alliance with companies like Meta to directly compete against Nvidia and to cultivate an open ecosystem for tech development.

Despite major AI firms designing their own chips, Su views this as an opportunity, highlighting that few can replicate AMD's $6 billion annual R&D investment. She imagines a future where tech giants invest in AMD's chips while deploying their proprietary designs for specific applications.

Su's long-term outlook anticipates substantial growth in the specialized AI chip market, which she estimates could be valued at $500 billion by 2028. AMD, as the second-largest player in this burgeoning market, is poised to become a significant participant. Su emphasizes the need for long-term investment and patience in the industry, where progress is gauged over extended periods.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.