The demand for Intel shares spiked on Wednesday, 8 April, with the stock gaining 9.5% to hit an intraday high of $57.92 apiece, extending its winning streak to a sixth consecutive trading session. The stock was last seen around these levels in June 2021.
Apart from the optimism surrounding the Middle East ceasefire, the rally was supported by the company’s entry into Elon Musk’s Terafab initiative—a project that could reshape how advanced chips are developed across Tesla Inc.
Intel announced on Tuesday that it is partnering with Elon Musk’s SpaceX and Tesla on the recently launched Terafab project to build semiconductors.
In a post on X (formerly Twitter), Intel confirmed that the company will help the Terafab project “refactor” silicon fab technology—a process used in semiconductor manufacturing to eliminate physical inefficiencies and streamline production.
The collaboration could mark a shift in Tesla’s hardware strategy. Tesla already designs its own chips, but Musk’s companies have never manufactured them at scale. Now, he is envisioning doing so at a scale that could rival leading chip manufacturer Taiwan Semiconductor Manufacturing Co.
Musk is pushing towards large-scale in-house chip production. During the latest earnings call, he warned that external suppliers such as TSMC, Samsung Electronics, and Micron Technology could hit capacity limits within a few years.
For Intel, the partnership fits into CEO Lip-Bu Tan’s broader turnaround strategy following years of market share losses and declining sales.
“Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power future advances in AI and robotics,” Intel added in the post.
Terafab was first unveiled by Musk last month. It is a planned $20–25 billion semiconductor facility at Giga Texas that brings together Tesla, SpaceX, and xAI into a single, vertically integrated AI hardware ecosystem—Musk’s boldest infrastructure bet since Gigafactory 1.
The initiative aims to produce a massive amount of computing power each year—around 1 terawatt of capacity annually. Musk is looking to consolidate the entire chip-making process—design, fabrication, memory, and advanced packaging—into one location.
Intel shares jump over 31% in April
With today’s rally, Intel’s month-to-date returns have surged to 31.72%, contributing to a 193% gain from August 2025. Before this recovery, the California-based company had been heavily punished by investors, with the stock plunging 61% between January 2024 and July 2025, falling to its lowest level since 2009.
The strong second-half performance in 2025 helped the stock close the year with an 84% gain, recovering all of the 60% losses seen in 2024. In the current year, it has extended its winning momentum, rising another 58% so far.
However, the stock remains 23% below its record peak of $75.81, touched in 2000.
(With inputs from Bloomberg)
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