Advanced Micro Devices, Inc. (NASDAQ: AMD) is having a relatively rough day in the market today, and for good reason. A key executive at the company recently announced that he was resigning from his position and it looks like the company’s rival – Intel – will be snatching him up. Today, we’ll talk about the news, how the stock is reacting, and what we’ll be watching for ahead.
AMD Executive Steps Down
As mentioned above, Advanced Micro Devices is having a rough start to the trading session this morning in light of recent news surrounding a key executive. On Tuesday, Raja Koduri announced that he has made the decision to resign from his position as Senior Vice President and Chief of Architecture for the Radeon Technology Group.
Shortly following the announcement of Koduri’s resignation, various reports started to surface on Wednesday that he would be joining the Santa Cara-based rival, Intel. However, there wasn’t an official announcement made about this until yesterday afternoon. Nonetheless, it is official at this point, Koduri is going to join Intel as the Chief Architect and Senior Vice President of the company’s newly formed Core and Visual Computing Group. In a statement, Murthy Renduchintala, Chief Engineering Officer at Intel and President of its Client and Internet of Things Group, had the following to offer about the hiring of the former AMD executive:
“We have exciting plans to aggressively expand our computing and graphics capabilities and build on our very strong and broad differentiated IP foundation… With Raja at the helm of our Core and Visual Computing Group, we will add to our portfolio of unmatched capabilities, advance our strategy to lead in computing and graphics and ultimately be the driving force of the data revolution.”
How The Stock Reacted To The News
Unfortunately, the news of the loss of Mr. Koduri was a big hit to AMD, as he played a key role in the Radeon program. As a result, we’re seeing massive declines in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the declines. Currently (10:19), AMD is trading at $11.22 per share after a loss of $0.48 per share (4.14%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMD. In particular, we’re interested in following the story to see who the company brings in as a replacement in the key role. Also, it’s going to be interesting to watch as the battle between Advanced Micro Devices and Intel wages on. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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