Lisa Su, the CEO of Advanced Micro Devices (AMD), a semiconductor giant valued at $162 billion, shares how an early-career question has shaped her decision-making process. This pivotal inquiry, posed by her mentors during her formative years in the industry, has played a crucial role in steering AMD towards its current success. The company, once facing significant challenges, has transformed under Su's leadership, focusing on high-performance computing and gaming sectors. Su emphasizes the importance of long-term vision and strategic choices that align with the company's core strengths.

The Power of Vision: Shaping AMD's Future

Su’s leadership philosophy is rooted in a fundamental question that she encountered early in her career. This query, which asked her to envision her future aspirations, became a guiding principle for her as she took on leadership roles at AMD. By applying this same introspective approach to the company, Su was able to steer AMD towards a clear and focused path. She recognized the importance of understanding not just what the company could do, but what it should prioritize to excel in the competitive semiconductor market.

During her tenure as COO in 2014, Su faced critical decisions about AMD's direction. One of the most significant was whether to pursue the booming smartphone chip market. Despite its potential, Su determined that this area did not align with AMD's core competencies. Instead, she chose to focus on high-performance computing and gaming, areas where AMD had a competitive advantage. This decision required a deep understanding of the company's strengths and long-term goals. Su’s foresight allowed AMD to avoid distractions and concentrate on building technologies that would drive future growth. She emphasized that the impact of today's decisions can be seen three to five years down the road, reinforcing the need for strategic planning.

From Crossroads to Success: A Turnaround Story

When Su joined AMD in 2012 as a senior vice president, the company was at a critical juncture. It faced intense competition from rivals like Intel and Nvidia, and its stock price hovered around $3 per share, with rumors of impending bankruptcy. Despite these challenges, Su saw potential in AMD and decided to take the helm. Her mentors advised against joining due to the company's history of inconsistent performance, but Su believed in her vision for the company's future. After serving as COO for six months, she was appointed CEO in October 2014, marking the beginning of AMD's transformation.

Under Su's leadership, AMD diversified its product offerings, expanding into gaming consoles and developing new chip designs. One of her key strategic moves was switching manufacturing partners from GlobalFoundries to Taiwan Semiconductor Manufacturing Company (TSMC) in 2018. This shift improved production efficiency and quality, contributing to AMD's resurgence. While the company's stock has experienced fluctuations, peaking at nearly $200 before dropping to $100, Su's leadership has been instrumental in positioning AMD as a formidable player in the semiconductor industry. Her ability to ask the right questions and make informed, long-term decisions has been central to AMD's revival and continued success.