Intel CEO Lip-Bu Tan Is Excited About Partnering With Tesla On 14A Chips: 'Can Think Of No Better Partner' Than Elon Musk

In 2025, Intel Corp CEO Lip-Bu Tan said the institution could exit its spot manufacturing concern if it failed to unafraid outer customers. Today, the company's shares surged arsenic Elon Musk's Tesla Inc. signaled plans for a deal.

The rally followed Intel's beardown first-quarter net and comments from CEO Tan, who highlighted a deepening collaboration with Musk's companies, including Tesla, SpaceX and xAI.

"I tin deliberation of nary amended spouse than Elon Musk," Tan said connected Thursday during Intel's net call. "We are excited to research innovative ways to refactor silicon process technology."

Earlier connected Wednesday, it was reported that Tesla plans to usage Intel's next-generation 14A manufacturing process for its TeraFab AI project, marking a imaginable breakthrough infinitesimal for Intel's struggling foundry ambitions.

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Musk earlier said Tesla plans to usage Intel's 14A process for its TeraFab AI spot analyzable successful Austin, a task aimed astatine powering robotics, autonomous systems and information halfway workloads.

The statement could go Intel's archetypal large lawsuit triumph for its precocious manufacturing node.

Intel's 14A exertion is cardinal to its effort to vie with Taiwan's starring chipmaker, Taiwan Semiconductor Manufacturing Co., successful the planetary foundry market.

During the call, Tan said Intel is engaging with aggregate customers and highlighted that the Tesla concern remains successful aboriginal stages.

"It is simply a precise wide relationship, and we volition update you arsenic we go," helium said. "We person aggregate different customers we are engaging. Stay tuned."

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Analysts person viewed the woody arsenic a imaginable validation of Intel's turnaround strategy, which hinges connected attracting outer spot manufacturing clients amid surging AI-driven demand.

Intel reported net of 29 cents per stock for the quarter, acold exceeding the expert statement estimation of 1 cent, according to Benzinga Pro data.

Revenue for the play came successful astatine $13.58 billion, beating Wall Street expectations of $12.42 cardinal by 9.28% and rising from $12.67 cardinal a twelvemonth earlier.

Looking ahead, Intel projected second-quarter adjusted net of 20 cents per share, good supra the 9-cent estimate, and forecast gross betwixt $13.8 cardinal and $14.8 billion, compared with expert expectations of $13.07 billion.