Intel (NASDAQ: INTC) is pushing higher on Wednesday after the Santa Clara-headquartered firm announced a monumental partnership with the Terafab project.
Terafab – an ambitious multi-billion dollar manufacturing initiative led by Elon Musk’s Tesla, xAI, and SpaceX – represents a paradigm shift in domestic chip production.
The semiconductor stock is extending gain as investors cheer the news that INTC will provide the foundational manufacturing and packaging expertise to help Musk’s ventures reach a goal of one terawatt of compute power per year.
Year-to-date, Intel shares are now up more than 40%.
What Elon Musk partnership means for Intel stock
Intel’s team-up with billionaire Elon Musk is super bullish given it brings the company something it has desperately sought: a high-profile, high-volume anchor tenant for its nascent foundry unit.
By aligning with Tesla and SpaceX, the multinational is positioning itself at the “epicenter” of the next industrial revolution – robotics and space-based artificial intelligence (AI).
Musk’s track record of disrupting established industries brings a “halo effect” to Intel, signaling to other titans that its 18A process tech is finally ready for high-stakes commercial deployment.
This deal isn’t just about revenue – it’s a strategic endorsement that proves Intel can now support massive, custom workloads required for autonomous driving, and large-scale AI training.
In short, the announcement de-risks INTC stock for long-term institutional investors.
Lynx analyst sees massive upside in INTC shares
Adding fuel to the fire, Lynx Equity’s senior analyst KC Rajkumar issued a bullish note on Intel stock today, raising the price target to $70, indicating potential upside of another 20% from here.
INTC has successfully navigated previous supply chain bottlenecks, he noted, adding its older 7nm and 14nm nodes are now running at full capacity – the strongest utilization seen in years.
The analyst pointed out that if Intel’s current wafer throughput continues to improve, it will likely report first-quarter results well above the midpoint of its guidance.
Rajkumar’s note emphasizes that the market is underestimating Intel’s execution speed, suggesting that above-seasonal growth is now a tangible reality rather than a mere forecast.
Is it too late to invest in Intel Corp?
INTC shares are worth owning as the company’s financial turnaround now seems to be moving into high gear.
Yet, Intel is trading at a more attractive sales multiple compared to its AI-centric peers – providing a compelling “catch-up” play for value-oriented investors.
Beyond the Terafab news, Intel’s recent $14.2 billion repurchase of its Ireland manufacturing stake from Apollo signals a solid balance sheet and a return to full control over its most profitable assets.
All in all, following a recent swing to positive free cash flow and Musk offering validation to its “Foundry 2.0” strategy, Intel is no longer a “turnaround story” – it’s actually evolving into an AI infrastructure powerhouse.
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