Intel’s Terafab tie-up puts AI foundry ambitions in focus
Tigress Financial raised its Intel price target to US$145, citing potential gains in foundry scale and AI exposure, but the partnership’s financial impact remains undisclosed.
Intel’s reported Terafab partnership with companies associated with Elon Musk, including SpaceX, Tesla and xAI, is aimed at producing advanced chips for artificial intelligence, robotics and autonomous vehicles. Yahoo Finance reported the initiative as a potential catalyst for Intel’s efforts to expand its foundry business.
Tigress Financial reiterated a Buy rating on 15 September and raised its Intel price target to US$145 from US$118. The firm said the partnership could give Intel access to customers with significant AI and high-performance computing requirements, potentially improving foundry scale, utilisation and manufacturing economics.
Greater production volumes and engagement with demanding customers could also support improvements in yields, scalability and advanced manufacturing technology. The initiative may broaden Intel’s exposure beyond CPUs to AI accelerators, custom silicon and other specialised computing applications.
Intel has highlighted advanced packaging and its wafer foundry network as part of its growth strategy. The company also said more than 130 customers were using or testing its Core Ultra Series 3 and Core Series 3 processors for edge AI and robotics applications.
The partnership’s commercial terms, production volumes and potential revenue contribution have not been disclosed. Investors also face risks around customer concentration, competition, manufacturing execution, yields, pricing and reliability. About 152.25 million Intel shares were reportedly sold short as at 31 August, while 138 hedge funds held stakes at the end of the second quarter, up from 112 in the first.
