Intel Joins Terafab Project with Musk's Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Should l Buy INTC?
Source: seekingalpha
- Partnership Formation: Intel has joined forces with Elon Musk's companies, including SpaceX, xAI, and Tesla, in the Terafab project, aiming to refactor silicon fab technology to advance future AI and robotics.
- Production Goals: Terafab plans to produce 1 terawatt of computing power annually, with Intel stating that its capabilities in designing, fabricating, and packaging ultra-high-performance chips will accelerate this ambitious target.
- Market Reaction: Intel's shares rose approximately 3%, while Tesla's shares fell nearly 2% on Tuesday, indicating mixed market responses to the collaboration, possibly reflecting investor concerns about Tesla's future.
- Strategic Implications: Analysts suggest that the establishment of the Terafab facility may signal the first step towards a merger between Tesla and SpaceX, potentially occurring as soon as next year, which would further consolidate their control over the semiconductor supply chain.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 64.940
Low
20.00
Averages
39.30
High
52.00
Current: 64.940
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Stability: The company announced the repurchase of Apollo's 49% stake in its Ireland fab, reflecting improved financial health and boosting investor confidence.
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- Quarter-End Valuation: At quarter-end, the value of Mobileye's stake was $4.13 million, representing 2.02% of QSM's reportable assets under management, indicating its significance within the investment portfolio.
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See More
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