Mosesmann reiterated his buy rating on AMD shares and his $22 price target, representing 60 percent upside from Wednesday's close. Tesla is looking to develop their own chips that are custom made to their AI needs, and provide energy efficiency while tackling specifically the problems of self-driving.
According to CNBC, Tesla, Inc.
Elon Musk, CEO of Tesla, said that transitioning from the reliance was a "tough slog" on the vision chip of Mobileye.
GlobalFoundries, a chip fabricator, has a wafer supply agreement in place with AMD through 2020.
AMD spin-off GlobalFoundries Inc Chief Executive Sanjay Jha said his company is working directly with Tesla, according to the CNBC report. The report indicated that Tesla was on a mission to develop its own chip for autonomous cars in order to be more vertically integrated, but that Tesla was potentially relying on building that "on top of AMD intellectual property".
Some media outlets are reporting that GlobalFoundries is working with Tesla on AI technology for its cars.
Interestingly, Tesla's head of AI, Jim Keller, is an ex-AMD CPU ar- chitect having designed Zen (used in Ryzen and EPYC), and has surrounded himself at Tesla with several key AMD players, which may have been the initial reason Tesla is aligning themselves with AMD. Keller was the man behind iPhone chips' A4 and A5. Chris Lattner, Tesla's vice president of Autopilot software, left the company in June after just six months at the helm. Incidentally, they all worked for AMD. Since Keller's hiring, Tesla has also brought on other big talents from AMD like director Ganesh Venkataramanan, Bill McGee, a principal hardware engineer, and Dan Bailey, a system circuit design lead.