AMD Names Lisa Su CEO - Update

(RTTNews) - Chipmaker Advanced Micro Devices Inc (AMD) Wednesday appointed Lisa Su as president and chief executive officer and member of the board, effective immediately. She replaces Rory Read, who will serve in an advisory capacity until the end of the year.

"Leadership succession planning has been a joint effort between Rory and the board and we felt that Lisa's expertise and proven leadership in the global semiconductor industry make this an ideal time for her to lead the company," said Bruce Claflin, chairman of AMD.

Following the announcement, AMD shares slid about 7 percent in after-hours trade on the New York Stock Exchange.

Read joined AMD as CEO in 2011 from Lenovo Group Ltd, where he was president and chief operating officer.

Su joined AMD in 2012 and most recently served as the company's chief operating officer. Previously, she was senior vice president and general manager, Global Business Units, responsible for the company's product strategy, product definition and business plans. Prior to joining AMD, Su served as senior vice president and general manager, Networking and Multimedia at Freescale Semiconductor Inc.

AMD, known for its processors for personal computers, has been struggling to spur growth and has conceded market share to larger rival Intel Corp. (INTC). The company has been hurt by the slowing demand for PCs and notebooks as tablets and smartphones gained prominence. To somewhat offset this, AMD has expanded into new markets such as game consoles and low-power server.

In July, AMD reported a smaller loss for the second quarter, led by higher revenue and margins, but has forecast weak revenue for the current quarter.

AMD stock closed Wednesday at $3.28 on a volume of 27 million shares. In after hours, the stock dropped $0.22 or 6.71% at $3.06.