Intel Stock (NASDAQ:INTC) Surges as Tesla Partnership Rumors Swirl - Could Intel Become Key Tech Player?
Silicon shakes as legacy chipmaker catches electric eye.
Intel's stock just ripped higher on speculation Tesla might tap the semiconductor veteran for its next-generation hardware needs. Street chatter suggests Elon's team is evaluating Intel's manufacturing capabilities—potentially positioning the chip giant as a critical infrastructure partner for Tesla's autonomous driving and AI ambitions.
Partnership potential meets production reality
Intel's fabrication facilities could offer Tesla tighter supply chain control amid ongoing global chip shortages. While neither company confirmed the rumors, investors clearly see synergy—pumping INTC shares on pure possibility.
Because nothing moves markets like unconfirmed speculation and hypothetical revenue. Wall Street's betting on promises again—what could possibly go wrong?
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
New reports suggest that Tesla has taken an interest in working with Intel and bringing Intel’s 18A process node to develop a line of “custom AI chips.” This WOULD be alongside Tesla’s current deal with Samsung (SSNLF), giving Tesla one more supplier.
Naturally, nothing is firm yet on this deal. But we have long heard about Intel’s custom silicon interest, and it is no secret that Elon Musk likes working with companies that are in line with his “area of business.” Reports also suggested that Tesla might have an interest in Intel for “packaging services” as well. Only time will tell if this turns out to be a solid development or not, but it certainly stands as a point to keep watch for going forward.
“Intel’s Got Real Problems”
And then, CNBC analyst Jim Cramer made another pass to talk about Intel, and not exactly confidently. Cramer’s recent discussion of Intel was, perhaps, a bit unfocused. But the last seven words really struck a chord: “Intel crushed them [Synopsys], I think. I think Intel crushed them. I really do because when you look at the China…they have been very close to Intel, Intel Foundry. Intel’s got real problems, I don’t know.”
Cramer’s recent remarks about Intel have been somewhat mixed. While he is sure that Lip-Bu Tan is capable of doing the job, he also advised caution after some recent gains in Intel stock, suggesting that the gains might not be sustainable going forward.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 25 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 15.37% rally in its share price over the past year, the average INTC price target of $22.34 per share implies 11.56% downside risk.
Disclosure
