Stock Market Today, April 7: Intel Rallies as it Joins Musk's Terafab Project

Intel (INTC +4.13%), which designs and manufactures CPUs, GPUs, and related computing products, closed Tuesday at $52.91, up 4.19%. The stock moved higher on news that Intel will be part of Elon Musk’s Terafab AI chip complex, another sign of renewed confidence in the firm.

Trading volume reached 124.8 million shares, coming in nearly 16% above its three-month average of 107.5 million shares. Intel IPO’d in 1971 and has grown 16,154% since going public.

How the markets moved today

The S&P 500 (^GSPC +0.08%) inched up 0.08% to 6,617, while the Nasdaq Composite (^IXIC +0.10%) added 0.10% to finish at 22,018. In the semiconductor industry, Advanced Micro Devices (AMD +0.45%) closed up 0.61% at $221.53, and Nvidia (NVDA +0.07%) gaining 0.26% to end at $178.10 as geopolitical tensions spurred continued investor caution.

What this means for investors

Intel soared today after it announced it would participate in Elon Musk’s Terafab project, helping build high-performance chips for SpaceX, xAI, and Tesla (TSLA 1.75%). Terafab represents an ambitious plan for a massive chip factory.

Last week, Intel said it would buy back its stake in its Ireland-based semiconductor factory, another sign of momentum. It puts the firm in a stronger position to benefit from growing chip demand.

For Intel, these are further signals that Intel’s turnaround efforts are paying off. The stock has gained over 40% in the past six months as CEO Lip-Bu Tan, appointed just over a year ago, cuts costs and builds partnerships to try to re-establish the firm as a leading chipmaker.