Intel shares rose modestly on Wednesday, clawing back part of Tuesday's decline, after CEO Lip-Bu Tan said the company will keep working with Elon Musk on SpaceX's Terafab complex in Texas. The comments eased concerns that Intel was losing ground to TSMC on the project.
Intel shares traded modestly higher Wednesday, recovering part of Tuesday's decline of more than 3%. A higher close would also break a four-session losing streak for the stock.
The relief followed comments from chief executive Lip-Bu Tan, who told Bloomberg that Intel will continue working with Musk on SpaceX's Terafab complex in Texas. Concerns that Intel was losing its place in the chip-manufacturing project in favor of TSMC had weighed on the stock this week.
Musk addressed the speculation directly, posting on X early Wednesday morning: According to X: "We will build and run the fab." He added that TSMC could at most sublease part of the Terafab, with nothing beyond that role.
Jim Cramer, whose charitable trust holds Intel stock, said the Texas project gives Intel's foundry business a proof of concept that could help it win additional large orders.
Source: CNBC
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