AMD CEO Resigns Stocks Dip

By Robert Davis
Jan 11 2011

Shares in chip maker AMD dipped this morning in the US after their CEO, Dirk Meyers announced that he was resigning from the company effective immediately.

Meyers departure from the company caused shares in AMD to dip sharply during early trading, as many investors have started to question the strategy of the chip producer.

The demand for tablets and smart phones has been on the rise recently but AMD has concentrated all efforts on making computer and server processors to compete with Intel. This was the plan developed by Meyers and the board of directors feels that he was not taking the company in the right direction.

The creation of chips for tablets and smart phones is a major industry right now and even Intel is struggling to keep up with the technology. However, the board at AMD feels that they can be more of a presence in the market if they have the right leader.

They announced after the departure of Meyers that they would seek a CEO that could make them a major competitor of Intel and also take them into the mobile market.

The CFO of AMD, Thomas Seifert, will act as the CEO until a permanent replacement has been found. According to insider reports from the company, the board of directors already has a short list of applicants that they are considering for the position.

Meyers told reporters after his announcement that the resignation was a mutual decision between him and the board.