SANTA CLARA, Calif. - Advanced Micro Devices, Inc. (NASDAQ:AMD) announced today that its President, Victor Peng, is set to retire on August 30, 2024. Peng, who has been at the helm since February 2022, will remain in an advisory role to aid the transition until his departure. During his tenure, Peng was instrumental in the integration and expansion of AMD’s embedded business and spearheaded the company’s cross-company artificial intelligence (AI) strategy.
Dr. Lisa Su, AMD Chair and CEO, acknowledged Peng's significant contributions to the firm, particularly highlighting his role in establishing AMD as a leading provider of FPGA and adaptive computing solutions. Peng's career spans over four decades, with a focus on FPGAs, SoCs, GPUs, and high-performance CPUs. His leadership at AMD followed a notable stint at Xilinx (NASDAQ:XLNX), which AMD acquired before his appointment as president.
With Peng's upcoming retirement, Vamsi Boppana, Senior Vice President of the Artificial Intelligence Group, will take on additional responsibilities overseeing the AMD Instinct data center AI accelerator business. Boppana, a Xilinx veteran since 2008, has been involved in various leadership roles, managing AI software and ecosystem development, as well as AI hardware roadmaps.
Salil Raje, Senior Vice President and General Manager of the Adaptive and Embedded Computing Group, will maintain his current role leading AMD's embedded business. Both Boppana and Raje will report directly to Dr. Su following the organizational changes.
AMD, a pioneer in high-performance computing, graphics, and visualization technologies for over 50 years, continues to focus on creating high-performance and adaptive products. The company's technologies are widely used by Fortune 500 businesses, research institutions, and consumers worldwide.
The announcement of Peng's retirement is based on a press release statement from AMD. The company has not yet named a successor for the role of president. Peng's leadership and experience have been integral to AMD's growth, and his advisory presence is expected to support a smooth transition of responsibilities.
In other recent news, Advanced Micro Devices (AMD) has made several notable developments. The company recently announced the acquisition of Silo AI, an all-cash deal valued at approximately $665 million. Stifel maintained a Buy rating on AMD shares following this acquisition, emphasizing the importance of a comprehensive AI stack in the competitive landscape.
On a different note, KeyBanc adjusted the price target for AMD shares to $220 from $230, maintaining an Overweight rating. The change reflects a mixed outlook based on recent market assessments, with sustained demand for AMD's 500K MI300X GPUs and anticipated growth in traditional server demand, but challenges in the Embedded products sector.
AMD also announced significant changes to its executive compensation, with pay raises and long-term incentive awards for several top executives. The Board of Directors approved salary increases for Chair, President, and CEO Lisa T. Su, Executive Vice President Jean Hu, Chief Commercial Officer Philip Guido, and General Manager of Data Center Solutions Forrest Norrod.
In the investment sphere, Cathie Wood's ARK ETF showed confidence in AMD with strategic portfolio adjustments, purchasing a significant number of shares. Meanwhile, Stifel reaffirmed a Buy rating on AMD shares, expressing confidence in AMD's potential to capitalize on several medium-term growth drivers. These recent developments provide a snapshot of AMD's current business activities and market position.
InvestingPro Insights
As Advanced Micro Devices, Inc. (AMD) prepares for the retirement of its President, Victor Peng, and the transition of responsibilities to Vamsi Boppana and Salil Raje, investors and industry watchers are closely monitoring the company's financial health and stock performance. According to InvestingPro data, AMD currently has a market capitalization of $251.51 billion, reflecting its significant presence in the semiconductor industry. Despite recent volatility, with the stock taking a notable hit over the last week, resulting in a -15.71% one-week price total return, AMD remains a prominent player in the Semiconductors & Semiconductor Equipment industry.
InvestingPro Tips highlight that AMD is expected to see net income growth this year, a positive sign for investors looking for long-term value. Additionally, while the company's stock price has been quite volatile, it's important to note that AMD's liquid assets exceed its short-term obligations, indicating a stable financial position to weather short-term market fluctuations. For more in-depth analysis and additional tips, including the company's high earnings multiple and its P/E ratio relative to near-term earnings growth, investors can explore further on https://www.investing.com/pro/AMD. There are a total of 15 additional InvestingPro Tips available on the platform.
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