Advanced Micro Devices, Inc. (NASDAQ:AMD) Targeting New Areas of Growth
Advanced Micro Devices, Inc. (NASDAQ:AMD) is to diversify its operations beyond the PC business as it remains weary of the level of volatility in the field. CEO, Lisa Su, expects the company to continue playing a role in the PC business but with greater focus on other pieces of business where growth opportunities remain strong. AMD plans to focus more on other areas of business where demand remains high while also innovating new products expected to generate more value in the long term.
Company Split Talk
Su made the remarks as reports emerged that Advanced Micro Devices, Inc. (NASDAQ:AMD) was considering splitting itself into two, remarks that she has since refuted. There is belief that the company may opt to split itself into two businesses made of the graphics and the server business as one of the ways of trying to compete against rivals.
Advanced Micro Devices, Inc. (NASDAQ:AMD) has remained on the sidelines as other companies in the semiconductor space continue to register substantial growth on developing products targeting the internet of things. The company has not benefited from the growing demand in this space as it continues to target the gaming business with its graphics technology.
Point of Focus
The company has also been pursuing the data centers business through the manufacture of chips as it looks to take advantage of the ongoing transition to the cloud. Advanced Micro Devices, Inc. (NASDAQ:AMD) is also developing immersive platforms as it tries to improve the usability of various technologies.
The three business portfolios are expected to return Advanced Micro Devices, Inc. (NASDAQ:AMD) to profitability three to five years from now according to the CEO. The company has slashed its wage bill after doing away with hundreds of jobs as well as laying off several top executives as it tries to become lean and efficient.
Separately, there has been talk that Microsoft Corporation (NASDAQ:MSFT) has approached Advanced Micro Devices, Inc. (NASDAQ:AMD) about the possibility of acquiring it. A possible merger, in this case, would allow Microsoft to save a lot on chips by having Advanced Micro Devices as its subsidiary. However, neither parties have admitted to talking to each other about a possible merger.
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