AMD Scores Tesla As A Customer: What You Need To Know

Advanced Micro Devices Inc. (NASDAQ: AMD) has confirmed that infotainment systems in the newly updated Tesla Inc. (NASDAQ: TSLA) Model S and Model X vehicles will use its processors and graphics chips.

What Happened: The infotainment systems in the two vehicles will be powered by an AMD Ryzen Embedded APU and an AMD RDNA 2 architecture-based GPU that enables AAA gaming, AMD announced at Computex 2021 on Monday.

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Why It Matters: The newly refreshed Model S and X vehicles will bring several enhancements, including the 17-inch landscape touchscreen upfront and an 8-inch secondary display for passengers in the back.

It was speculated in February that Tesla may use AMD GPU in the new Model S and X vehicles for gaming. The new gaming computer will have 10 teraflops of gaming power, which is on par with the new PlayStation 5.

Tesla CEO Elon Musk had claimed in January that the new infotainment systems in the Model S and X would be able to play "Cyberpunk 2077," a game that was released last year and requires a powerful system to run.

See also: How to Invest in Tesla Stock

AMD supplies the chips found in prominent game consoles such as Sony Group Corp.’s (NYSE: SONY) PlayStation and Microsoft Corp.’s (NASDAQ: MSFT) Xbox. The majority of the company’s sales are in the personal computer and data center markets via CPUs and GPUs.

AMD’s confirmation that it has gained Tesla as a customer comes after it was reported in May that the chipmaker recorded its highest ever market share gain in the server market against rival Intel Corp. (NASDAQ: INTC) in fifteen years.

Price Action: AMD shares closed 2.1% higher on Friday at $80.08, while Tesla shares closed 0.9% lower on the same day at $625.22.

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