Industry analysts noted after Tuesday's announcement that by splitting off its manufacturing operations into a separate company, on track to become the nimble, innovative company that once had Intel on the run.

"It's like the old AMD after a spa and rehab vacation," said Dan Olds, principal analyst with the Gabriel Consulting Group. "They've come back stronger financially and in better shape overall. They're still the same company and they still [partially] own their fab operations. It's like they got a rich uncle to help them out."

Word of the spin-off was welcome news to Wall Street Tuesday, which responded by lifting AMD's stock by 18% Tuesday morning during the same period that the Dow dropped by 200 points, noted John Lau, a senior semiconductor analyst and managing director at Jefferies & Co., who had early last month.

Lau said the spin-off of the fab operation is a necessary move for AMD. "This fab spin-out changes the equation on how to remain competitive," he said. "Now it's a design race."