Advanced Micro Devices, Inc. (NASDAQ:AMD) is on investors’ radar after several reports confirmed that Tesla is working in collaboration with AMD to produce its own chips for self-driving cars. On Wednesday, Sanjay Jha, CEO of the AMD spinoff GlobalFoundries, also hinted in a conference that Tesla is interested in working with chip fabricators for its cars. Tesla wants to slash its reliance on other companies for the production of completely self-driving cars. Elon Musk promised the world earlier this year that Tesla will launch fully autonomous cars by the end of 2018. This partnership is raising enthusiasm on Wall Street for AMD stock.
AMD’s chips and technologies are being snagged by major companies, and analysts believe these partnerships will catapult the stock in the future. Amazon recently started using AMD’s FirePro S7150x2 server GPUs for Graphic Design AWS instances. Alibaba and Baidu are already using AMD’s technology for their Cloud and virtualization services. AMD’s FirePro technology is cheap, and enables companies to offer services for emerging markets where developers cannot afford to pay hefty fees. In August, AMD announced a partnership with Baidu for software optimization using AMD Radeon Instinct GPUs in Baidu’s data centers. Analysts think that this partnership is a threat to NVidia’s CUDA software platform in China.
Threadripper is one of the biggest opportunities for AMD. The company is breaking Intel’s market share with Ryzen Threadripper CPUs. Analysts also have high hopes for EPYC server and Vega, a GPU exclusively for high-end gaming.
Another excellent growth catalyst for AMD stock is the cryptocurrency craze. The cryptocurrency market is set to expand despite concerns and volatility. According to an estimate, the total cryptocurrency market worth is expected to surpass $4 trillion by the end of 2020. As a result, miners will hoard GPUs made by AMD and NVidia, as these GPUs are used for cryptocurrency mining and processing.