Musk to Adopt Intel's Latest Technology for Terafab Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy INTC?
Source: seekingalpha
- Strategic Partnership: Musk announced that Tesla and SpaceX will adopt Intel's '14A' manufacturing process, which is expected to boost Intel's chip manufacturing revival efforts, leading to a roughly 3% increase in its stock price in after-hours trading.
- Surging Market Demand: Musk highlighted that AI infrastructure developers are demanding record volumes of high-bandwidth memory, emphasizing that without the Terafab project, the chip supply will not meet the industry's rapid growth, underscoring the project's critical importance.
- Technology Maturity Assurance: Although the '14A' process is not yet fully complete, Musk stated that it will be 'fairly mature' by the time Terafab starts operations, indicating Tesla's confidence in Intel's technology and its pivotal role in future chip production.
- Intel Earnings Anticipation: Intel is set to report its earnings on Thursday, and Musk's partnership announcement may provide a positive market outlook for its performance, further solidifying its position in the highly competitive semiconductor market.
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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: 66.260
Low
20.00
Averages
39.30
High
52.00
Current: 66.260
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.
Intel's Q1 Earnings Outlook Optimistic Amid Upgrades
- Earnings Forecast Improvement: Intel is set to announce its Q1 earnings on April 23, with analysts projecting revenue of $14.2 billion, which is 9% above Wall Street estimates, reflecting strong confidence in server CPU demand.
- Rating Upgrades: HSBC and BNP Paribas have both upgraded Intel ahead of its earnings report, with HSBC highlighting sustained demand for server CPUs as a major catalyst, while BNP notes that AI-driven demand will further benefit the company.
- Increased Competitive Pressure: Despite validation from partnerships with Nvidia, analysts point out that Intel's foundry division faces approximately $10 billion in annual losses, with ongoing competitive pressures from TSMC and Samsung.
- Poor Profitability Outlook: The consensus EPS estimate is $0.01, a 92.3% year-over-year decline, and revenue is expected to be $12.43 billion, down 2.1% year-over-year, indicating challenges in profitability and revenue growth for the company.
See More
Musk to Adopt Intel's Latest Technology for Terafab Project
- Strategic Partnership: Musk announced that Tesla and SpaceX will adopt Intel's '14A' manufacturing process, which is expected to boost Intel's chip manufacturing revival efforts, leading to a roughly 3% increase in its stock price in after-hours trading.
- Surging Market Demand: Musk highlighted that AI infrastructure developers are demanding record volumes of high-bandwidth memory, emphasizing that without the Terafab project, the chip supply will not meet the industry's rapid growth, underscoring the project's critical importance.
- Technology Maturity Assurance: Although the '14A' process is not yet fully complete, Musk stated that it will be 'fairly mature' by the time Terafab starts operations, indicating Tesla's confidence in Intel's technology and its pivotal role in future chip production.
- Intel Earnings Anticipation: Intel is set to report its earnings on Thursday, and Musk's partnership announcement may provide a positive market outlook for its performance, further solidifying its position in the highly competitive semiconductor market.
See More
Intel's Q1 Earnings Outlook Shows Optimism
- Tesla Collaboration: During the Q1 earnings call, Tesla CEO Elon Musk announced plans to utilize Intel's 14A process in the Terafab project, which is expected to drive demand for Intel's chips and enhance its competitive position in the semiconductor industry.
- Stock Price Surge: Following Musk's announcement, Intel's (INTC) share price rose by 3% in aftermarket trading, reflecting market optimism regarding its upcoming Q1 earnings report and future performance.
- Analyst Rating Upgrade: HSBC upgraded Intel's rating from 'Hold' to 'Buy', raising the price target from $50 to $95, indicating strong recognition of Intel's momentum in the server processor market, which is likely to further boost its stock price.
- Future Earnings Outlook: Analysts expect Intel's Q1 2026 earnings per share (EPS) to be $0.02, down from $0.13 year-over-year, but anticipate a gradual increase in EPS from Q2 to Q4, suggesting potential improvement in the company's profitability going forward.
See More
US Stock Update: Tesla Earnings and Jobless Claims
- Jobless Claims Data: The jobless claims figure expected to be released on Thursday is 210,000, with market reactions likely to influence investor sentiment; if the data exceeds expectations, it could trigger market volatility amid ongoing economic recovery concerns.
- Tesla Earnings Performance: Tesla's earnings report beat profit expectations but missed revenue forecasts, resulting in a roughly 1% decline in after-hours trading, with the stock now 22% below its December high, indicating market concerns about its growth prospects.
- ServiceNow's Challenges: ServiceNow exceeded earnings expectations and raised guidance in its latest report, yet the ongoing war in Iran is disrupting subscription growth in the Middle East, leading to a 12% drop in after-hours trading and a 33% decline year-to-date, highlighting geopolitical risks impacting business.
- Agricultural Stock Pressure: Tractor Supply hit a new 52-week low, affected by rising gasoline and fertilizer prices, reflecting challenges faced by global agriculture and potentially diminishing investor confidence in agricultural-related stocks.
See More
Tesla Partners with Intel for Chip Manufacturing
- Manufacturing Collaboration: Tesla CEO Elon Musk announced plans to utilize Intel's advanced 14A manufacturing process for chip production at its Terafab project, indicating Tesla's ongoing commitment to technological innovation.
- Stock Market Reaction: Intel's shares rose 2.8% in after-hours trading, reflecting market optimism regarding its collaboration with Tesla, which could enhance investor confidence in Intel's next-generation manufacturing processes.
- Strategic Partnership: Musk highlighted the strong relationship between Tesla and Intel during the earnings call, suggesting that their close collaboration will support Tesla's ambitions in robotics and data centers.
- Future Outlook: Musk noted that by the time Terafab scales up, the 14A process will likely be mature, making this strategic choice not only a boost to Tesla's technological capabilities but also potentially increasing Intel's market recognition.
See More
Earnings Preview: American Express, Intel, and American Airlines Reports
- Intel Earnings Anticipation: Intel is set to report its Q1 earnings after the market close, with analysts expecting results to align closely with forecasts; however, stronger demand and pricing for server CPUs are expected to offset ongoing weakness in the PC market, indicating potential for a turnaround.
- Comcast Under Pressure: Comcast braces for a challenging quarter as profits are anticipated to be impacted by rising NBA rights costs, alongside concerns over broadband subscriber losses amid intensifying competition, leading investors to closely watch guidance for potential improvements in the latter half of the year.
- American Airlines Cost Squeeze: American Airlines may face margin pressures in its upcoming report, with analysts predicting that higher fuel and labor costs will weigh on profitability, despite strong demand; the focus will be on the airline's pricing power in the current environment.
- American Express Earnings Bright Spot: American Express is forecasted to exceed Q1 earnings estimates, driven by lower credit losses and steady spending from higher-income customers, although investors will be attentive to any signs of stress within this core customer base.
See More
Intel's Q1 Earnings Outlook Optimistic Amid Upgrades
- Earnings Forecast Improvement: Intel is set to announce its Q1 earnings on April 23, with analysts projecting revenue of $14.2 billion, which is 9% above Wall Street estimates, reflecting strong confidence in server CPU demand.
- Rating Upgrades: HSBC and BNP Paribas have both upgraded Intel ahead of its earnings report, with HSBC highlighting sustained demand for server CPUs as a major catalyst, while BNP notes that AI-driven demand will further benefit the company.
- Increased Competitive Pressure: Despite validation from partnerships with Nvidia, analysts point out that Intel's foundry division faces approximately $10 billion in annual losses, with ongoing competitive pressures from TSMC and Samsung.
- Poor Profitability Outlook: The consensus EPS estimate is $0.01, a 92.3% year-over-year decline, and revenue is expected to be $12.43 billion, down 2.1% year-over-year, indicating challenges in profitability and revenue growth for the company.
See More
Musk to Adopt Intel's Latest Technology for Terafab Project
- Strategic Partnership: Musk announced that Tesla and SpaceX will adopt Intel's '14A' manufacturing process, which is expected to boost Intel's chip manufacturing revival efforts, leading to a roughly 3% increase in its stock price in after-hours trading.
- Surging Market Demand: Musk highlighted that AI infrastructure developers are demanding record volumes of high-bandwidth memory, emphasizing that without the Terafab project, the chip supply will not meet the industry's rapid growth, underscoring the project's critical importance.
- Technology Maturity Assurance: Although the '14A' process is not yet fully complete, Musk stated that it will be 'fairly mature' by the time Terafab starts operations, indicating Tesla's confidence in Intel's technology and its pivotal role in future chip production.
- Intel Earnings Anticipation: Intel is set to report its earnings on Thursday, and Musk's partnership announcement may provide a positive market outlook for its performance, further solidifying its position in the highly competitive semiconductor market.
See More
Intel's Q1 Earnings Outlook Shows Optimism
- Tesla Collaboration: During the Q1 earnings call, Tesla CEO Elon Musk announced plans to utilize Intel's 14A process in the Terafab project, which is expected to drive demand for Intel's chips and enhance its competitive position in the semiconductor industry.
- Stock Price Surge: Following Musk's announcement, Intel's (INTC) share price rose by 3% in aftermarket trading, reflecting market optimism regarding its upcoming Q1 earnings report and future performance.
- Analyst Rating Upgrade: HSBC upgraded Intel's rating from 'Hold' to 'Buy', raising the price target from $50 to $95, indicating strong recognition of Intel's momentum in the server processor market, which is likely to further boost its stock price.
- Future Earnings Outlook: Analysts expect Intel's Q1 2026 earnings per share (EPS) to be $0.02, down from $0.13 year-over-year, but anticipate a gradual increase in EPS from Q2 to Q4, suggesting potential improvement in the company's profitability going forward.
See More
US Stock Update: Tesla Earnings and Jobless Claims
- Jobless Claims Data: The jobless claims figure expected to be released on Thursday is 210,000, with market reactions likely to influence investor sentiment; if the data exceeds expectations, it could trigger market volatility amid ongoing economic recovery concerns.
- Tesla Earnings Performance: Tesla's earnings report beat profit expectations but missed revenue forecasts, resulting in a roughly 1% decline in after-hours trading, with the stock now 22% below its December high, indicating market concerns about its growth prospects.
- ServiceNow's Challenges: ServiceNow exceeded earnings expectations and raised guidance in its latest report, yet the ongoing war in Iran is disrupting subscription growth in the Middle East, leading to a 12% drop in after-hours trading and a 33% decline year-to-date, highlighting geopolitical risks impacting business.
- Agricultural Stock Pressure: Tractor Supply hit a new 52-week low, affected by rising gasoline and fertilizer prices, reflecting challenges faced by global agriculture and potentially diminishing investor confidence in agricultural-related stocks.
See More
Tesla Partners with Intel for Chip Manufacturing
- Manufacturing Collaboration: Tesla CEO Elon Musk announced plans to utilize Intel's advanced 14A manufacturing process for chip production at its Terafab project, indicating Tesla's ongoing commitment to technological innovation.
- Stock Market Reaction: Intel's shares rose 2.8% in after-hours trading, reflecting market optimism regarding its collaboration with Tesla, which could enhance investor confidence in Intel's next-generation manufacturing processes.
- Strategic Partnership: Musk highlighted the strong relationship between Tesla and Intel during the earnings call, suggesting that their close collaboration will support Tesla's ambitions in robotics and data centers.
- Future Outlook: Musk noted that by the time Terafab scales up, the 14A process will likely be mature, making this strategic choice not only a boost to Tesla's technological capabilities but also potentially increasing Intel's market recognition.
See More
Earnings Preview: American Express, Intel, and American Airlines Reports
- Intel Earnings Anticipation: Intel is set to report its Q1 earnings after the market close, with analysts expecting results to align closely with forecasts; however, stronger demand and pricing for server CPUs are expected to offset ongoing weakness in the PC market, indicating potential for a turnaround.
- Comcast Under Pressure: Comcast braces for a challenging quarter as profits are anticipated to be impacted by rising NBA rights costs, alongside concerns over broadband subscriber losses amid intensifying competition, leading investors to closely watch guidance for potential improvements in the latter half of the year.
- American Airlines Cost Squeeze: American Airlines may face margin pressures in its upcoming report, with analysts predicting that higher fuel and labor costs will weigh on profitability, despite strong demand; the focus will be on the airline's pricing power in the current environment.
- American Express Earnings Bright Spot: American Express is forecasted to exceed Q1 earnings estimates, driven by lower credit losses and steady spending from higher-income customers, although investors will be attentive to any signs of stress within this core customer base.
See More
