Intel Adds $100B in April on Google, Musk Partnerships
Intel's stock has surged 55% this month, its best stretch in decades, after landing AI deals with Alphabet and Elon Musk's Terafab project.
Intel just pulled off one of the greatest turnarounds in semiconductor history.
Shares have surged 55% in April alone, adding more than $100 billion in market value. The stock posted a nine-day winning streak through Monday—the longest since at least the 1970s. After years of false starts and management turnover, Intel is suddenly the hottest name in chips.
Two deals changed everything.
The Google Partnership
On April 9, Intel announced a multi-generation manufacturing agreement with Alphabet. Google will use Intel's 18A process node for future AI infrastructure chips, marking the search giant's first major commitment to Intel Foundry Services.
The deal validates Intel's bet that it can compete with TSMC in advanced manufacturing. Google choosing Intel over the Taiwanese giant is a statement. It suggests Intel's yields have improved enough to win hyperscaler business.
Intel CEO Pat Gelsinger called it "a watershed moment for Intel Foundry." The market agreed—shares jumped 12% on the news.
Elon Musk's Terafab
Then came the Terafab announcement.
Intel confirmed it will supply chips to Elon Musk's newly formed Terafab consortium, which is building AI semiconductor capacity for Tesla, SpaceX, and xAI. The project aims to reduce US dependence on Asian chip production while meeting the explosive demand for AI compute.
Details remain sparse, but the partnership reportedly involves custom chip development across multiple process nodes. Intel's Oregon and Arizona fabs are expected to handle production.
Adding Musk to the client list carries symbolic weight beyond the contract value. It signals Intel can compete for the most demanding AI workloads.
By the Numbers
| Metric | Value |
|---|---|
| April gain | +55% |
| Market cap added | $100B+ |
| Current price | ~$67 |
| 52-week low | $18.51 |
| Winning streak | 9 days (longest since 1970s) |
Intel now trades near $67, up from a 52-week low of $18.51 hit in February. The stock has more than tripled from those depths.
What Changed
Intel's turnaround has three pillars:
Process technology. The 18A node is on track for volume production in late 2026. Early data suggests competitive performance with TSMC's N3E. If Intel can deliver on yields, it becomes a viable second source for cutting-edge chips.
Government support. The CHIPS Act is pumping billions into Intel's US fabs. The Terafab deal likely includes additional federal backing, though neither party has confirmed specifics.
Sentiment reset. Intel spent years as a punching bag. Analysts wrote it off. That created asymmetric upside when results started improving. A stock nobody owns can rally hard when the narrative flips.
Risks Remain
Intel isn't out of the woods. The company still needs to prove 18A works at scale. One bad yield report could crater the stock.
Competition isn't standing still. NVIDIA continues to dominate AI training. AMD is gaining share in data center. The easy money in Intel might already be made.
But for now, momentum favors the bulls. Intel reports Q1 earnings on April 24. The setup is tricky—expectations have reset higher, and any miss will hurt.
Still, a company that's added $100 billion in three weeks deserves attention. Intel is back. Whether it stays back depends on execution.