Gene Munster Says Elon Musk Has Talked About Moving Away From Nvidia Before, But It's 'Proven Extremely Hard To Do' As Tesla Doubles Down On AI5 Chip - Tesla (NASDAQ:TSLA)

Core Insights - Tesla is intensifying efforts to develop its own AI chip, the AI5, which aims to match Nvidia's performance while being more power-efficient and cost-effective [2][4][5] - Gene Munster cautions that transitioning away from Nvidia has proven challenging for Tesla, despite Musk's optimistic projections [1][5] - Cathie Wood of ARK Invest supports Tesla's AI ambitions, suggesting the AI5 chip could significantly outperform Nvidia's offerings [6] Group 1: AI Chip Development - Elon Musk emphasized the importance of custom AI chips for Tesla's robotics and self-driving initiatives, stating the AI5 chip will deliver comparable performance to Nvidia's Blackwell chip while consuming one-third of the power and costing less than 10% [2][3] - The AI5 chip will be produced by Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, with manufacturing spread across multiple locations [4] - Plans for the AI6 chip are already in place, expected to double performance within a year of the AI5's launch [4] Group 2: Market Performance and Financials - Tesla reported third-quarter revenue of $28.1 billion, reflecting a 12% year-over-year increase, surpassing Wall Street's consensus estimate of $26.24 billion [7] - Tesla's stock closed at $445.91, experiencing a 3.54% decline before recovering to $452.90 in after-hours trading [7] - The company continues to show a strong upward trend in stock performance across various time frames according to Benzinga's Edge Stock Rankings [7]