Overview
- Intel said Tuesday it will join Elon Musk’s Terafab with SpaceX, Tesla, and xAI to help build a new chip foundry.
- The project targets output equal to about one terawatt of computing power per year for AI and robotics, and Intel says it will contribute design, fabrication, and packaging at scale.
- Shares surged 43% across six sessions to a five-year peak by Wednesday, with a modest pullback in early Thursday trading as broader market nerves set in.
- A separate deal last week to buy back Apollo Global Management’s stake in Intel’s Irish chip plant also boosted confidence and lifted the stock 9% that day.
- Analysts caution that recent net losses, negative free cash flow, and a triple‑digit forward P/E leave expectations high, even as suppliers like Teradyne jumped to a record on the news.