"Reap what you sow," they say. But it ain't always that easy.
Just ask former Advanced Micro Devices
This breaks a long spell of AMD occupying the most budget-conscious spaces, while leaving more profitable market slots to its larger competitor. The new Llano chips are souped-up versions of the ultralight chips introduced right around Meyer's ousting, and they represent an important step in the multiyear plan that was designed under his reign. This is the culmination of the long-derided ATI acquisition and the resulting Fusion strategy. But Meyer isn't there to reap the fruits of that labor (though I hear the severance package was pretty nice).
That would be well and good if AMD's board had a successor in mind. As it turns out, the board did -- but the top candidates didn't want the job. Oops.
According to a Bloomberg report, AMD's headhunters have approached former HP CEO and current Oracle
Gelsinger went so far as going on the record: "I said no, and I said no again," he told Bloomberg. Can you feel the love tonight?
Running AMD is a thankless job for sure. Meyer went from strength to strength and was rewarded with a pink slip just as his efforts started bringing AMD's bottom line out of the red and into the black. The new leader would be expected to lead AMD into smartphones and tablets, which Meyer wasn't terribly enthusiastic about doing. But then you're trading a single huge competitor against a gaggle of firmly established players from Texas Instruments to Qualcomm
Does that space really need another hopeful competitor when AMD could simply focus on taking share from Intel in its traditional markets? I think not.
As a contrite AMD shareholder, I wish whoever takes the job the best of luck -- with pleasing the board more than refining Meyer's road map.
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Fool contributor Anders Bylund owns shares of AMD and has written puts on Intel but holds no other position in any of the companies discussed here. Yeah, you can play both sides of famous rivalries. The Motley Fool owns shares of Texas Instruments, Qualcomm, EMC, and Oracle. The Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of NVIDIA and Intel, as well as creating a diagonal call position in Intel and writing puts on NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.