Intel’s Shares Soar 7% as Terafab Chip Factory Upgrade Sparks Market Enthusiasm
Intel’s stock experienced a significant 7% leap on Tuesday, September 8, following an upgrade from Northland Capital Markets analyst Gus Richard. Richard shifted his rating of the chipmaker from “market perform” to “outperform”, and set an ambitious price target of $120 per share. This suggests an approximate 25% upside from its previous close.
The optimistic forecast is driven by Intel’s participation in the colossal Terafab project. This joint semiconductor mega-factory, located in Grimes County, Texas, is a collaboration between Tesla and SpaceX. Intel plays a crucial role as a key foundry partner.
Terafab represents an initial investment of $16.8 billion, with total projected costs potentially reaching a staggering $119 billion across all phases. The vertically integrated facility, planned to span over 100 million square feet, is set to manufacture, package, and test advanced logic and memory chips. The goal is to achieve 1 terawatt of AI compute per year.
The plant is designed to produce chips for a variety of high-tech applications, including Tesla’s self-driving vehicles, Optimus robots, and SpaceX’s space-based systems. Analysts believe that Intel’s involvement places it at the forefront of America’s AI chip independence initiative, providing a significant boost to its foundry business.
Source: CNBC – Stock Market News, September 8, 2026