Intel (NASDAQ:INTC) shares rose after Elon Musk said TSMC will not replace the company in the Terafab project, according to a report by Stocks Down Under.

The stock movement underscores how sensitive Intel's valuation remains to any signal about its role in large-scale AI infrastructure buildouts. A single public statement from Musk — the billionaire backer of AI venture xAI — was enough to move the chipmaker's share price, reflecting investor anxiety over whether Intel's foundry business can secure marquee customers.

What did Musk actually say?

Musk stated that TSMC, the world's largest contract chipmaker, would not take Intel's place in the Terafab initiative. The comment directly addresses speculation that the Taiwan-based foundry giant could supplant Intel in a project tied to next-generation AI compute capacity.

Stocks Down Under reported the remarks, which arrived amid ongoing questions about Intel's competitive standing against TSMC in advanced process manufacturing.

Why does this matter for Intel?

Intel has spent years trying to rebuild credibility as a foundry operator capable of serving external customers at the leading edge, a market TSMC dominates. Musk's statement signals that, at least for the Terafab project, Intel retains the slot rather than ceding it to its strongest rival.

For investors, the dynamic is straightforward:

• Intel's stock reacted positively to the news, as reported by Stocks Down Under.
• The gain reflects relief that a high-profile AI-linked project remains anchored to Intel rather than TSMC.
• Musk's involvement carries weight because his companies represent some of the largest anticipated buyers of AI compute hardware.

The episode also highlights the outsized influence individual statements from Musk now exert across the semiconductor supply chain. Chip stocks have repeatedly moved on his comments about suppliers and partners, and Intel is no exception.

What comes next?

The report offers no additional detail on Terafab's scope, timeline, or financial terms, so the commercial impact on Intel's revenue remains unquantified. Investors will watch for confirmation of Intel's exact role in the project — and for any concrete capacity or pricing commitments — before treating Musk's remark as a durable shift in the foundry competitive picture.