What Happened?

Shares of computer processor maker Intel (NASDAQ: INTC) jumped 2.9% in the afternoon session after it announced a major partnership with Elon Musk’s "Terafab" project, a joint venture with Tesla and SpaceX. 

Intel would provide critical design and packaging expertise to help the facility produce one terawatt of computing power annually for AI and robotics. This collaboration is a significant validation of Intel’s foundry business and its ability to manufacture high-performance chips at scale. 

The stock also gained momentum following a price target upgrade from KeyBanc, which raised its forecast from $65 to $70. Analysts highlighted strong demand for Intel’s new "Panther Lake" processors and improved manufacturing yields on its 18A process.

After the initial pop the shares cooled down to $51.89, up 2.2% from previous close.

Is now the time to buy Intel? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Intel’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 3.6% after it agreed to repurchase Apollo Global Management's 49% stake in its Fab 34 chip manufacturing plant in Ireland for $14.2 billion. This transaction allowed Intel to regain full control over the key production facility, which manufactures advanced processors.

Intel is up 31.8% since the beginning of the year, and at $51.89 per share, it is trading close to its 52-week high of $54.32 from January 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at only $783.25.

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.