With Tesla and SpaceX Using Intel’s 14A, Is INTC Stock a Buy Now as Part of an Early Bet on Its Foundry Plans?

Intel (INTC) stock has been a massive turnaround story since the appointment of Lip-Bu Tan as the CEO in March 2025. In the last 52 weeks, INTC stock has skyrocketed by 278%. This rally has been backed by steady improvement on the fundamental front. 

A key part of the efforts towards benefiting from AI-driven growth has been strategic partnerships. Recently, Elon Musk said that his companies will be adopting Intel’s “latest technology for its ‘Terafab’ project.” In particular, Tesla (TSLA) and SpaceX will be deploying the 14A manufacturing process. It’s likely to be a big step towards Intel’s revival efforts and a boost for Intel Foundry. To put things into perspective, it’s expected that “Terafab will eventually produce one terawatt of computing capacity a year.”

Besides this, HSBC recently upgraded Intel and opined that the company’s continued demand for server CPUs is a “bigger catalyst” than the foundry push. In a tight demand-supply scenario, Intel is likely to command a hefty pricing premium. Further, with the CPU shortage expected to extend into 2027, the outlook is positive from a margin expansion perspective. 

About Intel Stock

Headquartered in Santa Clara, Intel is a designer and manufacturer of advanced semiconductors. In addition to designing CPUs and semiconductor products, the company is also a developer of semiconductor manufacturing process technologies, or nodes. 

Intel claims to be the only corporation in the United States to be undertaking R&D for next-generation semiconductor manufacturing technologies and high-volume manufacturing of logic semiconductors. 

Intel’s addressable market has been expanding as the technology giant engages with customers to address various AI-driven compute workloads. At the same time, Intel is expanding its external foundry business, which is another growth catalyst. 

The company is almost back from the dead, and the turnaround is reflected in stock price action. In the last six months, INTC stock has surged by 113%. Backed by strong results and partnerships, it’s likely that the uptrend will sustain.

Strong Q1 2026 Results

Intel recently reported Q1 FY26 earnings, which exceeded analyst estimates. Revenue came in at $13.6 billion, higher by 7.2% on a year-on-year (YoY) basis and $1.4 billion above the January 2026 outlook. Further, the earnings per share were 29 cents as compared to the analyst forecast EPS of 1 cent. 

The strong numbers were attributable to strong execution coupled with 22% YoY growth in the data center and AI business. It’s also worth noting that in the Intel foundry business, the progress related to Intel’s 18A and 14A has been ahead of expectations. 

AI has already been driving demand for silicon and advanced packaging, which will benefit Intel in the next few years. The company already has strong strategic partners that provide clear revenue and cash flow visibility. 

Besides strong numbers, Intel has also provided a top-line guidance of $13.8 billion to $14.8 billion for Q2. Further, the gross margin is expected to be 39%, which will be 930 basis points higher on a YoY basis. 

What Do Analysts Say About INTC Stock?

Based on 44 analysts with coverage, INTC stock has a consensus “Hold” rating. While five analysts have a “Strong Buy” rating for INTC stock, two analysts have a “Moderate Buy,” and a majority of 33 analysts have a “Hold” rating. Among the bears, one analyst has a “Moderate Sell” rating, with three analysts opining that INTC stock is a “Strong Sell.” 

The mean price target of $54.87 represents potential downside of 33% from current levels. Further, the most bullish price target of $95 suggests that INTC stock could climb 17% from here.

As INTC stock has surged in the last 52 weeks, today in particular has seen a 20% spike, and Q1 results beat Wall Street forecasts, the sentiment is likely to remain positive.