The review, which is at its early stages is part of Chief Executive Lisa Su’s cunning plan to consider every possible option to turn the company around.
A consulting firm has been bought in to help it review its options and draw up scenarios on how a break-up or spin-off would work.
One plan is to spin off AMD’s graphics and licensing business from its server business.
This is not the first time that AMD has thought of doing this, but each time the plan was abandoned.
Su thought that there was “merit” for the company to at least consider such a possibility again.
Officially AMD is denying everything and said that it is sticking to the company’s commitment to the long-term strategy it laid out in May at its analyst meeting.
Part of the problem for any split is that AMD has an extensive cross-licensing agreement with Intel, a problem AMD would have to study carefully in the case of a break-up.
AMD faces declining cash flows and its net loss widened to $180 million in the quarter that ended March 28, from $20 million, or three cents per share, a year earlier.
It also missed on revenue expectations. It is forecasting a return to profitability in the second half of the year. If it manages this then all thoughts of spinning off anything will disappear.