Investor Dan Ives, who is the managing director of Wedbush Securities, thinks that the Tesla Inc. (NASDAQ:TSLA) Terafab AI chip project could be hinting towards a possible SpaceX merger next year.
Terafab Would Pave The Way For SpaceX-Tesla Merger
In a new investor note released on Tuesday, Ives reaffirmed bullish sentiments for Elon Musk’s enterprises. He shared that the project would let Tesla ramp up its AI efforts, as current suppliers, including Micron Technology Inc. (NASDAQ:MU), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) and Samsung Electronics Co. Ltd. (OTC:SSNGY), “are unable to meet future demand for TSLA’s AI strategy.”
Ives also said that while the cost of the Terafab project was projected to be around $25 billion, “the initial production target is expected to reach 100k wafer starts per month,” with potential to “scale to 1 million wafer starts per month,” as demand for AI compute …
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