Intel stock up 58% over 9-day rally

Intel shares rose about 58% and were set for a ninth straight day of gains, their best run since at least the 1970s, amid several deal announcements.

Recent catalysts included an expanded partnership with Google, which will use Intel’s Xeon 6 CPUs for AI training and inference.

Intel also joined Elon Musk’s Terafab project in Austin, which aims to design and manufacture custom chips for SpaceX, xAI, and Tesla.

Intel also bought back the remaining shares of its Ireland chip plant for US$14.2 billion earlier this month.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

The jump in shares may tie more to Intel’s long-running work with Nvidia, the AI chip company, which was not mentioned 1.
Nvidia plans to invest US$5 billion in Intel and work with it on custom chips, while Intel will build Nvidia-custom x86 CPUs for Nvidia’s AI infrastructure platforms 1.
The Nvidia agreement offers clear financial backing, while the Terafab project with Elon Musk still has no publicly disclosed Securities and Exchange Commission (SEC) filings from Intel or Tesla about the arrangement 2.
Without those filings, industry insiders have said the Terafab deal may be less defined than the public rollout suggests 2.

These agreements mark a move toward Intel making chips for other companies, even when they compete with Intel in parts of the semiconductor business, including Nvidia 1.
The approach lets Intel lean on its advanced packaging and chip fabrication strengths, which analysts think could be its first contribution to Musk’s Terafab project 2.
For chip buyers, Intel adds another U.S.-based option alongside manufacturers like TSMC, the world’s largest contract chipmaker, and Samsung, easing supply constraints Musk has discussed 3.
The plan could shift industry balance by adding U.S.-based capacity for custom chips across areas like automotive and space-focused uses, as described in coverage of Terafab’s planned chip lines 4.