Tesla Teams With Samsung—Will Other Chipmakers Follow?

Tesla's recent partnership with Samsung for chip supply, influenced by evolving U.S. trade tariffs, signals a strategic shift among electric vehicle manufacturers towards securing robust, potentially domestic, semiconductor supply chains for autonomous driving technology. This trend positions Intel and AMD as prime beneficiaries; Intel, trading at 64% of its 52-week high, offers an asymmetrical setup given its significant U.S. manufacturing investments and Mobileye legacy, while AMD, already present in automotive infotainment, recently saw its price target boosted to $210 by Susquehanna. The intensifying demand for reliable, U.S.-based chip solutions is expected to drive revaluation across the semiconductor sector as other EV players seek similar collaborations.

Analysis

Tesla's strategic partnership with Samsung for chip supply, driven by a desire to mitigate risks from U.S. trade tariffs and potential supply chain bottlenecks, is signaling a broader industry trend toward securing domestic semiconductor sources for autonomous vehicle technology. This positions U.S.-based chipmakers Intel (INTC) and Advanced Micro Devices (AMD) as primary potential beneficiaries. Intel appears to offer a distinct asymmetrical risk-reward profile; the stock is trading at just 64% of its 52-week high, possesses deep expertise in automotive vision systems via its Mobileye legacy, and has made substantial, early investments in U.S. manufacturing in Ohio and Arizona. Furthermore, analyst forecasts project a significant improvement in Intel's earnings to a profit of eight cents per share in Q1 2026 from a current loss of 10 cents, an outlook that does not yet incorporate the upside from a potential EV contract. Concurrently, AMD is also a strong contender, leveraging its existing presence in automotive infotainment systems. Trading at 97% of its 52-week high, AMD's valuation is supported by strong analyst sentiment, exemplified by a recent Susquehanna target price increase to $210. The central thesis is that the next major catalyst for either company will be securing a partnership with another EV manufacturer, such as Rivian or Lucid, to supply chips for their autonomous driving platforms.

Key Decisions for Investors

• Intel presents a compelling asymmetrical opportunity, as its valuation is depressed while its strategic U.S. manufacturing investments and strong earnings recovery forecast position it to capture significant upside from a future EV partnership.
• For investors in Advanced Micro Devices, which trades near its peak, the key catalyst to monitor is a new partnership in the autonomous vehicle sector, which would be crucial for sustaining momentum and realizing the 19% upside implied by Susquehanna's $210 price target.
• Actively monitor for partnership announcements between emerging EV makers, particularly Rivian or Lucid, and a U.S. chip supplier, as such a deal would serve as a primary validation of this investment thesis and likely trigger a material revaluation for the selected semiconductor firm.