Intel Joins Musk’s Terafab Chip Venture, Mizuho Raises Target to $59
Elon Musk’s Terafab project, involving Intel alongside Tesla, SpaceX and xAI, has requested quotes from Applied Materials and Lam Research as it targets silicon production by 2029. Mizuho raised Intel’s price target to $59, forecasting 10-15% annual server CPU ASP gains and growth from 2026 EMIB-T packaging and 14A process.
1. Intel Partners on Terafab Chip Venture
Intel has joined Elon Musk’s Terafab initiative alongside Tesla, SpaceX and xAI, engaging major equipment suppliers like Applied Materials, Tokyo Electron and Lam Research for price quotes and delivery timelines. The venture, launched in March, aims to begin silicon fabrication by 2029, marking Intel’s entry into a vertically integrated automotive and AI chip effort.
2. Analyst Boosts Intel Price Target to $59
Mizuho upgraded its Intel price target from $48 to $59, citing stronger-than-expected demand for server processors driven by agentic AI workloads. The firm projects 10-15% annual increases in average selling prices for Intel’s server CPUs through 2027, reflecting the company’s positioning in high-performance computing markets.
3. Server CPU Demand, Foundry Growth and PC Market Risks
Mizuho highlighted long-term upside from Intel’s upcoming EMIB-T packaging technology in 2026 and the potential for external customers on its advanced 14A process in the second half of 2026. However, the note warned of a 10-15% decline in PC shipments next year, suggesting Intel may shift production capacity toward higher-margin server chips to offset consumer softness.