Advanced Micro Devices (NASDAQ:AMD) CEO Lisa Su has been recognized as CEO of the Year by Time Magazine, highlighting her transformative leadership over the past decade. When Su took the helm of AMD, the company's stock was trading at approximately $3, and its presence in the data-center chip market was negligible. Through a comprehensive redesign of AMD's products and improved customer relations, Su capitalized on the AI boom, propelling the company's value to surpass that of its historical rival, Intel (NASDAQ:INTC), for the first time in 2022. AMD's stock has since soared to around $140.
Harvard Business School has also begun using Su's management of AMD as a case study, underscoring the significance of her achievements in turning around the semiconductor firm. Despite these successes, AMD remains second in the semiconductor industry, behind Nvidia (NASDAQ:NVDA), which has become the most valuable company globally under the leadership of Su's cousin, Jensen Huang. Nvidia has dominated the AI data-center GPU market, with a 95% share in the third quarter of 2024.
In November, AMD announced plans to lay off 4% of its global workforce as part of a restructuring to better focus on AI opportunities. This comes at a time when large tech firms such as Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN) are developing their own specialized AI chips, potentially decreasing their dependence on AMD's products.
AMD's growth faces multiple external challenges, including advancements in AI, the security of Taiwan, where most of its top chips are manufactured, and the potential impact of U.S. President Trump's policies on the industry.
Su, known for her strategic acumen and demanding leadership style, emphasizes the importance of training leaders. Her rigorous approach includes weekend meetings, early morning discussions, and hands-on involvement with product testing. Patrick Moorhead, a tech-industry analyst and former AMD executive, notes that Su's management style may not suit everyone but is effective for those who meet her high standards.
As the AI industry evolves towards optimizing inference chips, AMD may benefit from its competitive products in terms of speed and energy efficiency. Su is also fostering an informal alliance with companies like Meta to challenge Nvidia's dominance and promote an open ecosystem for technology development.
Despite the trend of major AI companies designing their own chips, Su views this as an opportunity, pointing out that few companies are willing to match AMD's $6 billion annual R&D investment. She envisions a future where tech giants will continue to invest in AMD's chips while using their own for specific tasks.
Su's long-term vision includes the growth of the specialized AI chip market, which she predicts could be worth $500 billion by 2028. Even as the second-largest company in this expanding market, AMD stands to become a significant player. Su emphasizes the importance of long-term investment and patience in the industry, where progress is measured over years.
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