AMD Turnaround Off to Powerful Start, But Only Time Will Tell
AMD remains overmatched; it lacks the resources Intel can bring to the table. Such a problem is a given, and it's outside any CEO's capability to fix. Finding a way around Intel is a viable strategy, however, and Read appears to be executing well.
We're still early in AMD's turnaround-two years into a five- to seven-year effort-but much of what I've highlighted here is consistent with best practices. Realize that turnarounds are difficult, though, and that neither the soft market nor Intel's undiminished power make this effort any easier.
Overall, if you set aside revenue growth-which, as stated, won't get appreciably better until the end of the turnaround-Read has impressed in his first two years on the job. He has a strong team, a viable strategy and can point to some significant product development progress.
As tech company turnarounds go this, AMD's is one of the better ones. That just shows how difficult they are to pull off.
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