All the involved parties declined to comment on the speculation and also there was a late update to the article stating that " Jha mentioned Tesla as an example of a company working with chip fabricators, but did not specifically say that it was a GlobalFoundries customer."

If the rumors were to hold true then AMD would open itself to a new growing market and a new revenue stream which its rival GPU maker sees as a $6-$12 billion opportunity .

The confirmation of this speculation could also mean a setback to AMD's arch-rival Intel (NASDAQ:INTC) which recently acquired Mobileye (OTCMKTS:MBLY) .

Mitch Steves, the chip analyst of RBC Capital Markets speaking about the report makes an interesting observation " This suggests the value for AI/self-driving remains with the GPU.

Given how fickle AMD stock has been, investors need to tread with caution from here onwards as the Relative Strength Index (RSI) indicator reading at 64.82, is very close to the overbought threshold of 70.