Nvidia slides after AMD and Tesla announce a partnership for self-driving cars
REUTERS/Steve Marcus
Nvidia is down 2.81% at $180.68 a share on Thursday following reports that AMD is partnering with Tesla to develop a new chip for its self-driving cars technology.
AMD spiked higher following the news as it's a big win for the company, which was looking to take on Nvidia's dominance in the area. Some Wall Street analysts, however, wasn't overly impressed with the deal.
"We view the announcement as a near-term concern that should not impact the [self-driving car] story over the next several years," Mitch Steves, an analyst at RBC wrote in a note to clients.
Steves thinks that Nvidia still holds a strong grip on the market and won't be losing that position soon. Tesla represents less than 1% of the current auto market, and Nvidia already has partnerships in place with a bunch of other car manufacturers.
Steves also doesn't think that the AMD-Tesla chip will even replace Nvidia at Tesla. He views the new chip as a move to address specific computing tasks for the vehicle while an Nvidia chip would still handle general purpose computing.
Mark Lipacis, an analyst at Jefferies, thinks the Tesla partnership is a "critical win" for AMD, but that it's only the first step for the company if it really wants take on Nvidia.
"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. He continued by saying that he "would not expect shipments of AMD chips to Tesla to have a material impact near term to AMD bottom line."
Nvidia is up 75.37% so far this year.
Click here to watch Nvidia trade in real time...
Get the latest Tesla stock price here.
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- A millennial manager went viral after her Gen Z assistant picked up a work call while at the hair salon: 'Go off queen'
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Kia India looks to expand sales, service network to 700 touchpoints by year-end
- Shapoorji Pallonji’s Afcons Infra files DRHP for ₹7,000 crore IPO
- Water crisis affects businesses across Bengaluru; Is there room for cautious optimism?
- BenQ Zowie EC2-CW review – Premium wireless mouse for gamers
- Banks' GNPAs set to improve further to 2.1 pc by FY25: Care Ratings