Chipmaker AMD historically played second fiddle to Intel when it comes to market share and often performance. For a while, AMD parts enjoyed performance advantages over its Intel counterpart, but recently the performance crown has again moved back to Intel.
When AMD moved to buy ATI, the graphics firm, in 2006 many expected big things from the merger for both ATI and AMD, but to date that just hasn’t materialized. NVIDIA is running away from ATI in discrete graphics market share and after it posted record earnings while earnings from ATI/AMD drop.
The lackluster performance of AMD and ATI has led to the exodus of some AMD executives starting with the resignation of ATI’s Dave Orton in July 2007. The next executive to leave AMD was Henri Richard, AMD executive vice president and chief sales and marketing officer in August of 2007.
TheStreet.com now reports that sources are telling it that AMD CEO Hector Ruiz is possibly stepping down from his post. TheStreet.com’s unnamed source says that AMD President Dirk Meyer was appointed to the board last week and that plans for Meyer to take over the position of CEO for AMD has been in the works for some time.
"Dirk has always been slotted for being the new CEO. That's been clear since his nomination as president and COO," claimed TheStreet's source. Dirk Meyer was nominated president of AMD in January 2006.
However, reports say that there is no set time frame for a change of power at AMD. Ruiz's 5-year contract expired in April 2007, but was renewed for a one-year extention until April 26, 2008.
With no real outcry for Ruiz to leave it will likely be at least then before Meyer steps into the CEO position if rumors prove to be accurate.
However, not is all doom and gloom at AMD. The company just received $668 million shot in the arm after Mubadala Development Company took over 8.1% of the company's shares last week.