Intel (INTC) has surged 11% on Wednesday after yesterday’s announcement of a partnership with Elon Musk on his Terafab project. The tech billionaire’s companies, Tesla (TSLA), SpaceX, and xAI, will soon begin construction of a chip design facility. Intel’s capabilities will help accelerate Terafab’s goal of producing 1 terawatt per year of compute for future advances in AI and robotics, the company said in a post on social media platform X.
“Elon has a proven track record of re-imagining entire industries. This is exactly what is needed in semiconductor manufacturing today. Terafab represents a step change in how silicon logic, memory, and packaging will get built in the future,” Intel CEO Tan said in a statement. The broader tech sector rose 3.09%, and the S&P 500 climbed 2.43% on Wednesday after the US-Iran ceasefire was announced. However, INTC was already trending up before the ceasefire.
Intel (INTC) was placed under new leadership last year and is still in a transitional phase. Intel’s foundry business is still the most positive thing about the company. Furthermore, its investments in new AI-focused firms show promise and could help fuel revenue and gains for Intel. Intel’s collaboration with CrowdStrike is pivotal for integrating AI security into its PC platforms, emphasizing the importance of AI workload protection.
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INTC is trading near the top of its 52-week range and above its 200-day simple moving average. Wall Street has forecast 2026 to be a big year for Intel, but the stock may boom even further than initially forecasted. Currently, there are no recent upgrades for the stock. Most analysts, including Rosenblatt and JP Morgan, have maintained their current ratings. However, breaking through the $60 price level could mean big things for Intel, especially with earnings season just a few weeks away.
Intel (INTC) reported Q4 2025 revenue of $13.7B, beating guidance, with non-GAAP EPS of $0.15 vs $0.08 guided. AI PC, server, and networking revenues all grew double digits YoY and QoQ. However, Q1 2026 guidance reflects acute internal supply constraints, with revenue expected at $11.7–$12.7B and gross margin of 34.5%. Management remains confident in AI-driven growth and foundry momentum, projecting improved supply and margin recovery through 2026.