Elon Musk Reaffirms Control Over Terafab AI Chip Complex As Intel Remains Involved Aditya Raghunath Thu, October 8, 2026 at 8:43 AM EDT 3 min read INTC -2.71% TSM -0.69% TSLA -1.34% SPCX -1.15% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Price change for Intel stock in the last 6 months: 92%
$INTC Stock Price as of Oct. 7: $113
Elon Musk says Tesla and SpaceX will build and run the Terafab AI chip complex. That puts a spotlight on Intel (INTC:NASDAQ) stock, since Intel is a partner in the project.
Terafab is a planned Tesla-SpaceX project in Texas. The goal is a huge AI chip fab.
Someone on X suggested TSMC would likely own and run it. Musk shot that down. He wrote that his companies will build and run the fab, and there should be "ZERO doubt" about it.
He did leave a small door open. He said TSMC might sublease part of the site, but "nothing more than that."
Last week, Musk said the two sides had talked about possible cooperation.
Intel CEO Lip-Bu Tan told Bloomberg that Intel will stay involved.
Reuters noted that any role for TSMC could challenge Intel's place in the project as Musk weighs partners. Neither company responded to requests for comment.
Intel stock is tied to its foundry ambitions, so this news matters. Terafab could be a big win if Intel keeps its role. The risk is that TSMC takes on a bigger role.
Intel's foundry business still has work to do. It lost $2.1 billion in Q2. External foundry revenue was just $293 million. Landing a high-profile customer or partner would help.
The company says the technology is moving in the right direction. Output from its 18A chip process rose more than 50% from the prior quarter.
Tan also said the next process, 14A, is ahead of schedule. Intel plans to start production in the second half of 2027, with high-volume production in 2028.
The core business looks strong too. Q2 revenue was $16.1 billion, which was $1.8 billion above the midpoint of Intel's guidance.
Earnings per share came in at $0.42, well above the $0.20 guide. Data center revenue rose 59% to $6.3 billion.
Management says demand is outrunning supply. Intel now expects capital spending to exceed $20 billion in 2026. Q3 revenue is guided to $15.8 billion to $16.8 billion.
For Intel stock, Terafab is both a headline risk and an opportunity. Intel has said it will stay involved. Investors will want details on what that role looks like.
Intel stock could react to any word from Musk, TSMC, or Intel in the days ahead.
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