Semiconductor stock Advanced Micro Devices AMD was among the technology stocks that fell Wednesday on the heels of earnings reports from Tesla Inc TSLA and Alphabet being dissected by investors.
What Happened: AMD stock is now down year-to-date after Wednesday's decline. The drop comes as there was some optimism across social media from photos shared by company CEO Lisa Su.
Su shared pictures of an event with Tesla that she attended.
"Great spending time with the Tesla team talking about AI, leadership and more! Proud to partner with such an amazing team! Thanks for the invite!" Su tweeted.
Benzinga reached out to Tesla and AMD for more commentary on the meeting and did not hear back.
Su appeared to be a speaker at a Tesla event with a background slide in one picture showing the caption "Women in Tesla."
The meeting was likely more about Su's role in the technology space and less about the two companies partnering, but could be noteworthy given the past history between the two companies.
AMD lists Tesla as a partner on its website.
"The new Tesla Model S and Model X feature AMD Ryzen Embedded APU and RDNA2 based GPU that power the new infotainment experience with support for AAA gaming," the website reads.
AMD also lists a section on "driving innovation for the future of in-vehicle experience" where it highlights Tesla and Daimler as technology partners.
Why It's Important: AMD is one of several semiconductor companies operating in the automotive space. The company offers products for automobiles that include driver monitoring systems, in-cabin monitoring systems, driver information and more.
In January, Tesla CEO Elon Musk said the electric vehicle company planned to purchase chips from AMD to advance its artificial intelligence efforts. The comment came as Tesla also spent $500 million to buy hardware from NVIDIA Corp NVDA.
The automotive sector is one of the fastest growth sectors for semiconductor companies with Qualcomm Inc QCOM and others seeing strong year-over-year growth and bookings. AMD doesn't break out its automotive revenue like others in the sector, making it harder to see the impact, according to The Registar.
The Registar highlighted new automotive related products from AMD back in January as the company looks to grow in the sector.
While Su's appearance with Tesla is likely just part of a speaking engagement, it could come with more partnerships in the future or serve as a reminder to investors that Tesla and AMD are already partners.
AMD Price Action: AMD shares closed Wednesday down 6.08% to $144.63 on Wednesday versus a 52-week trading range of $93.12 to $227.30. AMD shares are up over 30% in the last year, but now down 1.5% year-to-date in 2024, as seen on the Benzinga Pro chart below.
AMD will report second-quarter results on July 30 after market close. Analysts expect the company to report revenue of $5.73 billion and earnings per share of 68 cents compared to $5.36 billion and 58 cents, respectively, in last year's second quarter.
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