This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Talk of CEO Change Swirls at AMD

And the big bet that AMD made by acquiring graphics-chip maker ATI for $5.4 billion in 2006 has yet to prove its worth. The first real fruits of the union aren't due until 2009, when AMD releases its so-called Fusion processor, which integrates computer processing and graphics acceleration on a single chip.

In the meantime, the rich -- some say excessive -- price that AMD paid for ATI has saddled the company with massive debt and restructuring charges at a time when profit margins are being squeezed by competition with Intel.

In the last three quarters, AMD lost roughly $1.6 billion combined -- and it's not clear when the company will return to break-even.

Still, the surest formula for a change may not involve Meyer replacing Ruiz: both men are part of the current management team and are said to have equally favored the ATI acquisition.

Ruiz also may be unwilling to end his term on a low note.

"Hector is a guy that loves to fight. He's not going to retire on a downturn," says the source.

As Ruiz soldiers on, all eyes will be on his presentation to analysts next month, where the CEO will bear a heavy burden to articulate a cogent comeback plan.

Among the most pressing questions are AMD's manufacturing strategy and its ugly balance sheet, say analysts.

AMD has been tight-lipped about details to outsource more of its chip fabrication to third-party manufacturers, even as it claims to be moving forward with the plan.

Given how central the project is to the company's finances, investors may not be willing to give AMD the benefit of the doubt much longer without seeing signs of progress.

Ruiz has earned the Street's trust with his past performance. But the future will hinge on results.

4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs