MOST READ: AMD's 'Nose Job' Falls Flat

SAN FRANCISCO -- Thirty-nine years after its founding, Advanced Micro Devices(AMD Quote) has appointed its third chief executive.

But for many investors, the leadership change looks less like Chapter 3 in the AMD story, and more like Chapter 2.5.

Despite the new job titles, the on-the-ground reality within the Sunnyvale, Calif., chipmaker looks much as it did before the news was announced.

Dirk Meyer, the new CEO, was already running much of the day-to-day operations of the company for more than a year as president and chief operating officer. And departing CEO Hector Ruiz will now be executive chairman, tasked with finalizing the new "asset-light" manufacturing strategy that has kept him busy for so many months.

In other words, both executives will be doing the very jobs that they have been so unsuccessful at, and which has left AMD in a financial shambles -- only now they have new titles.

Indeed, other cogs in AMD's malfunctioning management structure remain in place, including Chief Financial Officer Bob Rivet, who like Ruiz, joined AMD after implementing a less-than-spectacular turnaround effort at Motorola's(MOT Quote) erstwhile chip division.

A former AMD executive described Thursday's management change as "cosmetic surgery."

And judging by the stock reaction to the news, it appears the makeover did not beguile the Street.

Shares of AMD were down as much as 11.3% to $4.70 in midday trading Friday.

Meyer and Ruiz certainly have their accomplishments at AMD.