AMD/Tesla - A Fake Rumor Made in Speculator Heaven?

(Updated - September 21, 2017 10:15 AM EDT) (updated with Globalfoundries' direct statement)

Report a rumor involving AMD (NASDAQ: AMD), Tesla (NASDAQ: TSLA), and NVIDIA (NASDAQ: NVDA) and you’ve created the perfect speculative trifecta… add in buzz words like AI and autonomous cars and you’ve hit rumor mill nirvana.

Well, that's just what CBNC did right before the close Wednesday, jolting AMD's stock higher on a report it was working with Tesla on AI chips for self-driving cars. The problem is…. it isn’t true.

Sources indicate that the rumor, while juicy, is false.

As noted earlier, a Globalfoundries spokesperson said comments by CEO Sanjay Jha were being misreported and the company is not working with Tesla.

Below is the statement provided to StreetInsider.com by a Globalfoundries spokesperson:

"Sanjay's comments at GLOBALFOUNDRIES' GTC event were not reported accurately. In his presentation, Sanjay simply cited that companies like Apple, Google and Tesla are examples of the types of businesses showing interest in working closely with silicon companies to differentiate their offerings. Tesla has not committed to working with us on any autonomous driving technology or product."

Globalfoundries is the contract chip manufacturer for AMD and is considered a related party of the company because Mubadala and Mubadala Tech are affiliated with WCH, AMD's largest stockholder.

Tesla said it does not comment on speculation. AMD could not be reached for comment.

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