Investopedia·2025-11-07 18:00Core Insights - Intel's stock has surged over 85% in 2025, largely due to recent high-profile deals, including a partnership with Nvidia [6] - Tesla's CEO Elon Musk indicated the need for a "gigantic" semiconductor fabrication plant to support Tesla's AI ambitions, suggesting a potential collaboration with Intel [8] Intel's Strategic Moves - A deal with Tesla would represent a significant step in Intel's turnaround plan, especially if it includes commitments to its foundry manufacturing business, which has struggled to attract new clients [2] - Intel has also sought business from Apple, indicating a broader strategy to secure partnerships with major tech companies [2] Market Implications - A partnership with Tesla could enhance investor sentiment and boost Intel's stock, particularly if it involves commitments to Intel's foundry or manufacturing operations, which are crucial for maintaining U.S. government support [3] - Following the news of potential collaboration, Intel's shares experienced initial gains before stabilizing, while Tesla's shares saw a decline of about 4% [4] Political Context - A deal with Intel could provide Tesla with political goodwill, especially after recent tensions between Elon Musk and President Trump, as analysts suggest that partnerships with Intel may help companies engage positively with the Trump administration [5] Analyst Sentiment - Despite recent deals, analysts have noted that these have not yet included foundry commitments, leading to a generally neutral or bearish outlook on Intel's stock, with no current buy recommendations from analysts [9]