Advanced Micro Devices (AMD) soared to a new annual high Thursday morning after the chipmaker settled its antitrust case against rival Intel (INTC). Under the terms of the agreement, Intel will shell out $1.25 billion to AMD, and will abide by a new set of rules for conducting business. The pact also includes a renewed cross-license agreement between the two chip titans.

In prepared comments, AMD CEO Dirk Meyer called the settlement a game-changer. "We are optimistic that it will usher a new era for our industry," he said. "We recognize that it will take time for people to understand how the operating conditions in the processor business have changed. But make no mistake -- they have changed."

Hector Ruiz, the CEO who almost ruined AMD (NYSE: AMD), is gone, moved up to the chairman's role. and replaced by the company's COO Dirk Meyer. According to The New York Times, "Mr. Meyer, president and chief operating officer, is widely respected and admired by other A.M.D. technical employees and also has the confidence of Wall Street analysts." AMD lost another $1.2 billion in the latest quarter making the move almost essential to the firm's survival.

During the time Ruiz has been CEO, AMD has fallen behind Intel (NASDAQ: INTC) in the power and efficiency of its chips. While Intel made it to market with dual and quad-core processors, the AMD "Barcelona", meant to be their dog in the fight, was delayed.

Ruiz's colossal mistake was buying graphics chip company ATI and pushing his company's debt up to $5 billion. AMD now struggles to make its debt service.

Shareholders have been calling for Ruiz to step down for over a year. The AMD share price was above $40 just over two years ago. Now, it often trades below $7.

Ruiz will be remembered as a poor strategist who pulled his company into a precarious position. He is best gone. And, wont be missed.

Douglas A. McIntyre is an editor at 247wallst.com.