AMD, the second largest computer chip manufacturer in the world, did not have a strong showing at the Consumer Electronics Show in Las Vegas, leading company executives to push out CEO Dirk Meyer. Though details are scarce, there is much speculation as to the cause of his sudden departure. TechnoBuffalo’s own Noah Kravitz appeared on CNBC’s “Power Lunch” to weigh in on the future of AMD.
What exactly is hurting AMD to such an extend that they were forced to oust their leader? NVIDIA’s saturation of the mobile marketplace is one possible reason, as it is specifically tailoring chips to work on tablets and cellphones. Mr. Meyer was unable to present the company with a clear vision for the future to respond to NVIDIA. Investors began to question Mr. Meyer when he vowed to keep the company out of the tablet marketplace, which was projected to grow 181 percent in just one year. He stated that he would rather wait for the market to stabilize itself before putting money towards research and production of mobile chips. Obviously this strategy did not work out and the company is now running out of time to define its niche in the technology universe
At this point it isn’t exactly clear what the embattled company will try, but they have to act fast. There is some speculation that the company will be absorbed by a larger manufacturer considering the fact that many leading tech firms have oodles of leftover cash to invest. The problems, however, outweigh the opportunities, as it would set up competition with Intel and NVIDIA.
What do you think? Is AMD destined for destruction or will it be saved by another company? Is there any way for AMD to survive without entering the tablet market? Let us know in the comments below.
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Want to know more about AMD? Check out these links –
AMD Stays Away from Tablets as Sales Projected to Skyrocket in 2011
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