Market Overview

AMD Sells Off As Tesla Rumor Cools Down; Analyst Calls Partnership 'Completely False'

Share:
AMD Sells Off As Tesla Rumor Cools Down; Analyst Calls Partnership 'Completely False'
Related TSLA
Gene Munster Talks Apple, Amazon-Target, Tesla On PreMarket Prep
Trump Threatens European Auto Tariffs, But May Have Himself To Blame For Record Trade Deficit
Tesla Model 3 Delivery Horror Stories Keep Coming In (TalkMarkets)
Related AMD
The Chips Are Down: Weak Forecasts Hurt Semiconductor Stocks
Friday Follies: Brexit, Semiconductor, And Tariffs All Take Center Stage
AskSlim Market Week - Saturday, Nov. 17 (TalkMarkets)

Advanced Micro Devices, Inc. (NASDAQ: AMD) stock jumped nearly 8 percent from around $13.00 to above $14.00 this week after a report surfaced that the company was partnering with Tesla Inc (NASDAQ: TSLA) to develop an autonomous vehicle chip that utilized artificial intelligence technology. The reports took the market by surprise, especially since Tesla already has a partnership in place with AMD rival NVIDIA Corporation (NASDAQ: NVDA).

However, the rally was short-lived as the market began to doubt the report’s validity.

On Thursday morning, Reuters reported AMD partner GlobalFoundries denied claims the company has been working directly with Tesla.

“Tesla has not committed to working with us on any autonomous driving technology or product,” a GlobalFoundries spokesperson said.

One of the first market analysts to cry foul was Global Equities Research analyst Trip Chowdhry. In an email to clients on Thursday afternoon, Chowdhry called the Tesla-AMD partnership “completely false.”

“The rumors that TSLA will be using AMD chips in its autonomous driving initiatives are 100% false,” Chowdhry wrote.

Chowdhry reminded clients that Tesla’s recently-renewed deal with Nvidia is in place for five years. Chowdhry even took his dismissal of AMD one step further, saying that AMD will not be a significant player in deep machine learning technology. He said Nvidia will be the dominant name in the GPU category, and Intel Corporation (NASDAQ: INTC) will be the top name in the CPU category.

According to Chowdhry, the rest of the players “will be in the ‘others’ category, which will be about 10% of the market.”

AMD stock was trading at around $13.20 in Friday’s pre-market session, having given up most of its gains following the original report.

Related Link: Tesla-AMD Partnership Likely A 'Modest' Negative For Nvidia, But Its Competitive Moat Still Substantial

Latest Ratings for TSLA

DateFirmActionFromTo
Oct 2018Canaccord GenuityMaintainsHoldHold
Oct 2018JMP SecuritiesInitiates Coverage OnMarket Outperform
Oct 2018MacquarieInitiates Coverage OnOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Analyst Color News Rumors Travel Top Stories Analyst Ratings Movers Tech Best of Benzinga

 

Related Articles (INTC + AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Will Intercept Stock Potential Be Blindsided By FDA Letter?

Benzinga's Top Upgrades, Downgrades For September 22, 2017