Intel Stock Is Defying the Chip Slump as Musk Explains TSMC Role in AI Chip Project -- Barrons.com
Dow Jones2026/10/07 12:22By Callum Keown Much ado about nothing? Intel stock was defying the chip slump ahead of the open Wednesday after CEO Lip-Bu Tan and SpaceX's Elon Musk clarified the company's role in the gigantic Terafab AI chip project. It's good news-or at least better news than it might have been when Musk said on Saturday he was in discussions with Taiwan Semiconductor Manufacturing over collaborating on the Tesla and SpaceX project that Intel joined in April. Tan said Intel will continue working on the project, Bloomberg News reported Wednesday, while Musk played down any potential involvement by TSMC. "No, we will build and run the fab. Let there be ZERO doubt about that," he said in a post on X, replying to a suggestion that TSMC could own and run the plant. "Maybe TSMC subleases part of the Terafab if they want, but nothing more than that," he added. While not as bad as perhaps feared, TSMC's involvement still isn't great news for Intel. It seems the market was under the impression Intel would have the project to itself. Intel's shares have fallen 5.7% so far this week but were edging 0.1% higher ahead of the open Wednesday. That's as the broader sector was falling -- the iShares Semiconductor ETF (SOXX) pointed 1.7% lower in premarket trading. Advanced Micro Devices and Micron Technology were around 2% down. Intel stock remains up 205% in 2026, through Tuesday's close. Write to Callum Keown at callum.keown@dowjones.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires October 07, 2026 08:22 ET (12:22 GMT)
By Callum Keown
Much ado about nothing?
Intel stock was defying the chip slump ahead of the open Wednesday after CEO Lip-Bu Tan and SpaceX's Elon Musk clarified the company's role in the gigantic Terafab AI chip project.
It's good news-or at least better news than it might have been when Musk said on Saturday he was in discussions with Taiwan Semiconductor Manufacturing over collaborating on the Tesla and SpaceX project that Intel joined in April.
Tan said Intel will continue working on the project, Bloomberg News reported Wednesday, while Musk played down any potential involvement by TSMC. "No, we will build and run the fab. Let there be ZERO doubt about that," he said in a post on X, replying to a suggestion that TSMC could own and run the plant.
"Maybe TSMC subleases part of the Terafab if they want, but nothing more than that," he added.
While not as bad as perhaps feared, TSMC's involvement still isn't great news for Intel. It seems the market was under the impression Intel would have the project to itself.
Intel's shares have fallen 5.7% so far this week but were edging 0.1% higher ahead of the open Wednesday. That's as the broader sector was falling -- the iShares Semiconductor ETF (SOXX) pointed 1.7% lower in premarket trading. Advanced Micro Devices and Micron Technology were around 2% down.
Intel stock remains up 205% in 2026, through Tuesday's close.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 07, 2026 08:22 ET (12:22 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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