Tesla Picks Samsung for Its AI Chips. These Stocks Are Moving on the News.

The AI computing brain for Tesla’s Optimus robot is expected to use chips designed by Tesla and manufactured by Samsung Electronics. (Courtesy Tesla)

Tesla has selected Samsung to manufacture some of its artificial-intelligence chips. The decision is moving a lot of stocks early Monday, including shares of the electric-vehicle maker.

“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate,” Musk tweeted on Sunday, adding that Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. “I will walk the [production] line personally to accelerate the pace of progress.”

Samsung makes Tesla’s AI4 chip. Taiwan Semiconductor Manufacturing is making the AI5 chip.

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It’s a supplier decision for Tesla. The EV maker uses Tesla-designed chips, built by semiconductor fabricators, in computers used to help Tesla cars drive themselves and humanoid robots function. Tesla plans to start selling significant quantities of its Optimus humanoid robots in 2026, according to Musk.

Tesla, and Musk’s AI company xAI, also buy a lot of Nvidia chips to run the computers that train cars to drive themselves, and train robots to do useful tasks.

Tesla stock added 3% on Monday, closing at $325.59, while the S&P 500 finished flat and the Dow Jones Industrial Average dropped 0.1%.

Samsung stock was up 6.8% in overseas trading. TSMC’s U.S.-listed American depositary receipts were down 1.2%. Those moves add roughly $20 billion to Samsung’s market value and take roughly $12 billion from TSMC’s. Nvidia stock added 1.9% to $176.75.

Coming into Monday trading, Tesla stock was down about $16.50, or 5%, since reporting second-quarter earnings on Wednesday. Musk warned of some “rough quarters” ahead as the U.S. EV industry loses the federal purchase tax credit and other environmental regulatory support.

Sunday, Daiwa analyst Jairam Nathan cut his Tesla 2025 earnings-per-share estimate to $1.55 from $1.90, citing those regulatory challenges. He rates shares at Hold with a $300 price target.

The average analyst price target for Tesla stock is about $314, essentially unchanged since earnings.

Write to Al Root at allen.root@dowjones.com