Intel shares slide on Musk chip talks with TSMC, earnings caution

Intel Corporation shares fell 3.3% in morning trading on Thursday, reaching $92.41, after Elon Musk's Terafab chip initiative confirmed active discussions with TSMC about a dedicated fabrication facility to supply chips for Tesla, SpaceX, and xAI. The development undermines Intel's earlier position as a central foundry partner for the project.

The news emerged before the market opened, sending shares lower in pre-market trading before losses moderated slightly during the regular session.

Bernstein published a preview of Intel's third-quarter earnings, scheduled for release after Thursday's close, projecting fourth-quarter revenue below Wall Street consensus. The firm cited weakness in the PC market, with third-quarter shipments estimated to be down 20% to 22% year-over-year.

Wedbush noted that TSMC may raise prices on its CoWoS advanced packaging services by 10% to 20%. The firm views this as evidence of a renewed supply-chain bottleneck and reduced competitive opportunity for Intel in that area.

JPMorgan recently upgraded Intel stock to Neutral with an $85 price target, below Thursday's trading level. A Form 4 insider filing was also submitted on Thursday

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