Multinational semiconductor maker Advanced Micro Devices, Inc. (AMD) recently announced the appointment of Hasmukh Ranjan as the company's chief information officer (CIO), effective April 18. Ranjan was previously CIO at Xilinx, the semiconductor company that AMD acquired for an estimated $50 billion in February 2022.
As CIO of AMD, Ranjan will lead the company's global information technology (IT) efforts, including overseeing corporate IT infrastructure, maintaining technology systems, and enterprise architecture, among other things. Ranjan's experience scaling IT operations on a global level could be critical to AMD's efforts to continue to grow its IT business.
- AMD has appointed Hasmukh Ranjan as CIO; Ranjan was previously CIO of semiconductor company Xilinx, which AMD acquired in February for approximately $50 billion.
- Ranjan is seen as a leader in scaling global IT operations and could be critical to AMD's efforts to continue to grow its global IT business.
- AMD sees a total addressable market of $135 billion for leadership computing, graphics, AI, and related products.
Scaling Efforts to Support $135 Billion Market Opportunity
When it acquired Xilinx, AMD pointed to a $135 billion total addressable market (TAM) opportunity in the areas of leadership computing, graphics, and artificial intelligence (AI) products, to name a few areas of Xilinx's business. AMD emphasized the importance of scaling its business to capture a larger share of this growing market when it announced the completion of the acquisition.
Besides significantly expanding its portfolio of products, the Xilinx acquisition also bolstered AMD's executive leadership. Ranjan's experience overseeing and growing global IT operations could be key to AMD's continuing to grow.
Already Strong Signs of Growth
AMD's growth strategy has already yielded strong results. In its Q1 FY 2022 earnings release, issued on May 3, the company announced record quarterly revenue of $5.9 billion, marking year-over-year (YOY) growth of 71%. Gross margin was up 190 basis points YOY. AMD predicts continued expansion throughout the remainder of 2022, with projected FY 2022 revenue of $26.3 billion, a 60% increase YOY.
Although AMD shares have dropped significantly from their peak in November 2021, the company's stock has significantly outperformed the market in the past year. As of May 5, AMD stock has provided a one-year trailing total return of 22.1%, compared with -0.1% for the S&P 500.
Who Is Hasmukh Ranjan?
Ranjan is the new CIO of AMD, as of April 18. He was previously CIO of Xilinx.
What Does This Appointment Mean for Investors?
AMD has emphasized Ranjan's experience leading and growing global IT operations. Coupled with the company's strategy to rapidly scale its business, investors may expect AMD to continue global expansion of IT operations.
What Does AMD's Acquisition of Xilinx Mean More Broadly?
In acquiring Xilinx, AMD dramatically scaled its product and research and development (R&D) capabilities.