Market Overview

AMD CEO Lisa Su Denies Report She Could Be Leaving For IBM: 'Zero Truth To This Rumor'

AMD CEO Lisa Su Denies Report She Could Be Leaving For IBM: 'Zero Truth To This Rumor'

Advanced Micro Devices, Inc. (NASDAQ: AMD) shares traded higher by 3.5% on Tuesday morning after CEO Lisa Su denied a report that she is preparing to leave AMD for a position at IBM (NYSE: IBM).

What Happened

On Tuesday, reported Su is “eyeing the #2 position at IBM with the eventual goal to end up as CEO and President of IBM, replacing Ginni Rometty.” Su was quick to deny the report on Twitter.

“Just for the record, zero truth to this rumor. I love @amd and the best is yet to come!” Su wrote.

After Su’s denial, added a note to the original story saying that it would remain live and that it stands by its reporting.

Why It’s Important

Since taking over as CEO of AMD in October 2014, AMD’s stock has skyrocketed 757%. Su has been credited with leading a comeback in AMD’s CPU business, and AMD has even become a threat to Intel Corporation (NASDAQ: INTC) in the server processor market. If Su were to jump ship, it could potentially be a major blow for AMD and a huge feather in the cap of wherever she lands.

AMD shares showed little reaction to the initial report when it was published at around 5:50 a.m. EDT on Tuesday, and the stock remained quiet when the article began circulating on social media and among traders shortly thereafter. The lack of movement in the stock suggests traders didn’t have much faith in the reliability of the reporting.

What’s Next

Tuesday’s report isn't the first time AMD investors have dealt with rumors of Su’s departure. In December 2017, Intel poached AMD’s GPU head, and some have speculated that Intel would likely be very interested in having Su in a leadership position.

Given her track record of success at AMD, it wouldn’t be surprising to see other larger tech companies take a shot at luring Su away. Investors will be watching closely to see if anything comes of the IBM rumors or if Su is linked to any other company in the coming months.

AMD's stock traded around $28.87 per share at time of publication, up 3.1%.

Related Links:

AMD Drops On Mixed Quarter, Analysts Weigh In

Analyst: Google Cloud Could Drop Intel For AMD

Photo credit: Gene Wang, Flickr


Related Articles (AMD)

View Comments and Join the Discussion!

Posted-In: Ginni Rometty Lisa Su WccftechNews Rumors Management Top Stories Tech Best of Benzinga