Chinese electric-vehicle (EV) maker Nio (NYSE:NIO) clarified that it’s not collaborating with U.S.-based chipmaker AMD (NASDAQ:AMD) and is not holding talks with AMD about launching such an arrangement, CnEVpost reported today. In early trading, NIO stock is climbing 2.5%
On Monday, CnEVpost quoted AMD as saying that it had agreed to provide chips to Nio. Also on Monday, Seeking Alpha, citing AMD, reported that Nio would “use AMD’s EPYC family of processors in its HPC (high-performance computing) platform to help speed up AI deep learning training, save costs and shorten product development cycles.” The website stated that AMD’s products would enhance “Nio vehicle development,” but would not actually be incorporated into its EVs.
This morning, however, Nio’s senior director of corporate communications, Ma Lin, denied such reports. Ma said, “NIO and AMD are not working together and are not currently discussing cooperation, let alone authorizing AMD to carry out this campaign,” according to CnEVpost.
Nio’s Supply Issues Have Undermined NIO Stock
On May 19, Nio’s CEO, William Li reported that supply-chain problems were the company’s primary roadblock. The global chip shortage has also caused issues for Nio this year; in March, for example, the automaker had to suspend the operation of an assembly line for five days because of that situation.
Additionally, closures caused by China’s anti-Covid-19 measures have undermined Nio’s supply chains and production. As a result of all of these difficulties, the automaker’s deliveries increased only 12% year-over-year in the first five months of 2022. In May, Nio’s deliveries climbed just 5% versus the same period a year earlier.
Partly due to supply issues, NIO stock is down 36% so far in 2022.
Help May Be on the Way
Encouragingly, Nio’s deliveries climbed 38% in May, versus April. Meanwhile, in recent days, China has eased its lockdowns and restrictions while launching efforts to enable more of its citizens to obtain EVs.
Nio stock has responded a great deal to these improvements already, jumping 60% in the last month.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.