Intel rose another 9% on Wednesday.
Shares of Intel rose 4.2%, closing at $52.91 on Tuesday after SpaceX and Tesla tapped Intel to help the pair realize their AI dreams.
Intel posted on X that it was “proud to join the Terafab project,” which includes SpaceX, xAI, and Tesla. It added, “Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim” to produce 1 terawatt a year of computing power for future advances in AI and robotics.
“Terafab” is Elon Musk’s plan to vertically integrate into semiconductor production, which he believes will be a key bottleneck for AI in the coming years. The fab is a joint effort between Musk’s xAI, SpaceX, and Tesla, which he calls “the most epic chip building exercise in history.”
Chips coming from Terafab will go into robo-taxis, robots, and the data centers that Musk plans to put in space.
Gains have left Intel stock up 22% over the past month.
The initial stages of the Terafab project will cost tens of billions of dollars and focus on so-called two-nanometer nodes, which represent the state of the art in semiconductor design and manufacturing. Producing those chips, however, won’t be easy, which is where Intel enters the equation.
Tuesday’s gains leave Intel stock up 169% over the past 12 months. CEO Lip-Bu Tan took over in March 2025 and has successfully begun turning the company around. Intel stock hit an all-time high of almost $76 a share in 2000. Shares were almost $80 in 2020.
The news comes as SpaceX prepares for its initial public offering, expected midyear, which could value the space technology company at some $2 trillion.
SpaceX merged with xAI in February, accelerating Musk’s plans to turn SpaceX into an AI giant capable of running data centers and developing foundational AI models and applications.
Comments