Tesla Signs $16.5B Chip Deal with Samsung
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$16.5B Chip Pact
As part of the deal, Samsung's new chip plants in Texas will produce Tesla's next-gen AI6 chip. Tesla's CEO Elon Musk confirmed the deal in a post on X, stating that 'The strategic importance of this is hard to overstate.' Additionally, Samsung has agreed to let Tesla help improve manufacturing efficiency. Musk added that 'I'll personally walk the line to speed up progress.'
For Samsung, the deal comes at a time when the company is under growing pressure to catch up in the AI chip race. It currently lags behind competitors like TSMC (TSM) and SK Hynix in the global foundry market. This gap has taken a toll on both its profits and stock performance. Following the news, Samsung's Korean-listed shares gained almost 6% as of writing.
For context, foundry services involve manufacturing chips for companies like Nvidia (NVDA), Qualcomm (QCOM), and Apple (AAPL), which design their chips but rely on external factories for production.
Is Tesla Stock a Buy Now?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 15 Holds, and seven Sells assigned in the last three months. The average Tesla stock price target is $313.67, which is almost similar to the current level.
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