Shares of Advanced Micro Devices (AMD) and Nvidia (NVDA) both continue to trade down today following yesterday’s rumor that AMD might be stealing business from Nvidia (NVDA) for chips for autonomous driving sold to Tesla Motors (TSLA).
Some people, as I reported earlier, are not sure whether to believe the rumor.
Others are sure it’s false.
Trip Chowdhry with Global Equities Research this afternoon this afternoon declares it “completely false.”
Advanced Micro is is “dead on departure” in machine learning, he writes:
Comprehensive view is that TSLA and NVDA have currently a 5-year contract in place, which was renewed just recently. AMD is not a Player. AMD is DoD (Dead-on-Departure) in DML (Deep Machine Learning) Workloads. Google threw AMD out of its GPU Training Cluster, as AMD had extremely poor performance on GOOGL TensorFlow framework. Later, as a courtesy to AMD, GOOGL redeployed the AMD GPU’s for only VDI (Virtual Desktop Infrastructure). So far we have attended no less than 60 DML (Deep Machine Learning) conferences…we have not seen even a single benchmark of any DML Framework running on AMD GPU’s for production workloads. Investors optimism is completely misplaced that AMD will become a significant DML player. There is only going to be one GPU player NVDA, just like there is only one CPU Player INTC ….rest all the players will be in the others category, which will be about 10% of the market.
AMD shares today are down 34 cents, or 2.5%, at $13.40, giving up last night’s after-hours gains. Shares of Nvidia are down $5.80, or 3%, at $180.