Intel gains after report says it remains involved in Musk’s Terafab project

• Intel (NASDAQ:INTC) shares rose 1.5% premarket following a report that the company remains involved in Elon Musk’s planned Terafab chipmaking project.
• Intel CEO Lip-Bu Tan reportedly said the company will continue working on the venture.
• The report follows discussions between Tesla, TSMC and Terafab over potential cooperation.

Intel (NASDAQ:INTC) shares gained in premarket trading after Bloomberg News reported that the chipmaker remains involved in Elon Musk’s planned Terafab semiconductor manufacturing project.

Intel shares were up 1.5% at $114.23 in premarket trading.

According to the report, Intel CEO Lip-Bu Tan said the company will continue working on Musk’s Terafab chipmaking venture.

Terafab is Musk’s planned semiconductor manufacturing facility intended to produce artificial intelligence chips for Tesla and SpaceX.

The report comes days after Musk said Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) and Terafab had held discussions about potential cooperation.

Intel’s continued involvement would potentially position the chipmaker alongside Musk’s efforts to establish additional domestic semiconductor manufacturing capacity for AI-related applications.

Intel and Tesla had not immediately responded to Reuters requests for comment outside regular business hours, according to the report.

As of the previous close, Intel shares had gained more than threefold year to date.