Mosesmann reiterated his buy rating on AMD shares and his $22 price target, representing 60 percent upside from Wednesday's close. One of their main goals is to develop a power-efficient Artificial Intelligence (AI) chip created to deliver a totally autonomous driving. He views the new chip as a move to address specific computing tasks for the vehicle while an Nvidia chip would still handle general objective computing.
For those who are not aware, GlobalFoundries is the chip fabricator of AMD and has an existing agreement until 2020.
Electric carmaker Tesla Inc is working with Advanced Micro Devices Inc to develop its own artificial intelligence chip for self-driving cars, CNBC reported on Wednesday, citing a source familiar with the matter.More news: Hillary takes shots at Trump and Putin
Tesla is working with semiconductor company AMD on the chip, according to the report. The company has since responded that "Tesla has not committed to working with us on any autonomous driving technology or product", and Jha's comments were reported to be out of context.
Tesla is partnering with AMD, according to the source, and will build on top of AMD intellectual property. The 7nm-based Navi is scheduled to launch in 2019, the same year Musk promised to deliver Tesla's first-ever autonomous vehicle with self-driving capabilities. The company also stated that they do not comment on customers or potential customers' projects.
"A partnership between Tesla and AMD would make sense to us, given that former chief AMD MPU architect, Jim Keller (designer of AMD's current Zen architecture), left AMD to become Tesla's Head of Autopilot in early 2016", Lipacis wrote. Keller previously worked at AMD and Apple, particularly on the latter's A4 and A5 chips.
Tesla also brought other veterans in the tech industry: Ganesh Venkataramanan, Bill McGee, and Dan Bailey.