Mosesmann reiterated his buy rating on AMD shares and his $22 price target, representing 60 percent upside from Wednesday's close.
According to tech website WCCFTech, the new AI chip could be AMD's next-generation Navi graphics architecture.
GlobalFoundries, which fabricates chips, has a wafer supply agreement in place with AMD.
Myanmar must end persecution of the Rohingya now
Amid urgent calls from the United Nations for humanitarian access this week, Myanmar insisted the crisis was easing. The Rohingya minority in Myanmar is frequently described as one of the most persecuted groups in the world.
News of Tesla working with Advanced Micro Devices Inc (NASDAQ:AMD) over self-driving cars has thrown the latter company into focus with analysts and the general artificial intelligence (AI) market under the spotlight.
Yesterday, Sanjay Jha, CEO of AMD spin-off and chip fabricator GlobalFoundries, at the company's technology conference in Santa Clara, California, mentioned Tesla as an example of companies that were working with fabricators.
AI is a big topic at the moment and one Tesla found Elon Musk has certainly been vocal about in recent weeks. The company also stated that they do not comment on customers or potential customers' projects.
A 50-person team is reportedly working on the chip, headed by former Apple and AMD chip designer Jim Keller, who joined Tesla from AMD past year. Chris Lattner, Tesla's vice president of Autopilot software, left the company in June after just six months at the helm. Tesla has brought on several AMD veterans after hiring Keller, including director Ganesh Venkataramanan, principal hardware engineer Bill McGee and system circuit design lead Dan Bailey.
Tesla is known for its aspirations to vertically integrate its business as much as possible, and its partnership with AMD could be a move toward that goal.