Is AMD spelling out AI with Tesla?

Top of the Order:

What Gives, AMD?: Artificial intelligence (AI) is a big area of potential for many tech companies, in general, and chipmakers, in particular. For the past two days, the possibility that Advanced Micro Devices is working on artificial intelligence technology for use in future self-driving Tesla automobiles has been enough to give AMD shareholders a whiplash with the directions the company’s shares have gone.

On Wednesday, AMD shares rose 4.7 percent following a report from CNBC that said AMD was in league with Tesla in developing chips for the electric carmaker’s self-driving vehicle efforts. CNBC cited a “source familiar with the matter” as saying that Tesla has already begun testing the AMD chips.

But by Thursday, things had turned around somewhat for AMD. The company’s shares fell 2.4 percent to close at $13.41 after some Wall Street analysts threw cold water on the report.

Mitch Steves, of RBC Capital Markets, said in a research note that even if the reports of AMD’s involvement with Tesla were true, the processors manufactured by Nvidia are more likely to be the main workhorse for AI platforms, and that AMD’s offerings would be used for other computing needs.

At Global Equities, analyst Trip Chowdhry was even more more blunt, calling AMD “dead on departure” with regards to such AI efforts.

It sounds like, for now, AMD may be either right in the thick of it with Tesla, or just banging on the company’s door, hoping to get inside. Artificial intelligence may be a big opportunity for chipmakers, but the real winner will be whoever can make AI a reality for Tesla, or anyone else.

Middle Innings:

Trumped Up?: Billionaire investor Peter Thiel bucked the trend of nearly all major Silicon Valley personalities when, he threw his weight last year behind then-presidential candidate Donald Trump. Thiel even gave a speech at the Republican National Convention supporting Trump’s nomination, and he has also been seated near Trump at White House meetings on technology and business this year. Now, there are reports that Thiel might soon take a top post in the Trump administration, possibly as chairman of the President’s Intelligence Advisory Board.

Make a Deal: Million-dollar homes in the Bay Area are not uncommon. Finding what we in this region would consider “reasonably” priced homes can be a challenge. However, new data on home sale prices around the area shows there are some pockets of affordability, if one is willing to do some legwork. And, maybe commute a fair amount, too.

Bottom of the Lineup:

Should Have Been Simpler: It takes a big man to admit when he is wrong. And Bill Gates is proving that true. The Microsoft co-founder has said that if he could do it all over again, he would have made the famous “Ctrl-Alt-Delete” function just one button and called it quits.

Quote of the Day: “If they don’t change, it’s just going to happen to more and more people.” — Ellen Pao, who appeared on “The Daily Show” to talk about her new memoir and her efforts to fight against sexism among Silicon Valley investment and technology companies.

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