Intel (INTC) Stock Soars 12% on Major Google TPU Order and Nvidia Partnership Rumors

Key Takeaways

• Google reportedly ordered over 3 million Tensor Processing Units from Intel’s foundry for 2028 delivery
• Intel (INTC) shares skyrocketed more than 12% Monday morning after The Information broke the story
• Nvidia is evaluating Intel’s capabilities to manufacture a processor that integrates four graphics chips
• Nvidia is conducting preliminary tests on Intel’s cutting-edge 18A manufacturing technology
• These developments signal potential momentum shift for Intel’s struggling foundry division

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After years of challenges, Intel received a much-needed boost Monday morning.

Intel Corporation, INTC

According to The Information, Google has contracted Intel to produce over 3 million Tensor Processing Units scheduled for 2028 delivery. The revelation triggered a surge of more than 12% in Intel’s stock price during early trading hours.

The deal comes after extensive evaluation of Intel’s sophisticated packaging capabilities, the publication reported, citing four sources familiar with the arrangement.

Tensor Processing Units represent Google’s proprietary AI accelerators, designed for training and deploying artificial intelligence models. Analysts at Morgan Stanley project Google will manufacture upward of 6 million TPUs between 2027 and 2028, positioning Intel’s portion as a substantial business win.

Nvidia Explores Intel Partnership

While Nvidia hasn’t committed to a formal order, the graphics chipmaker is assessing Intel’s ability to fabricate a specialized processor that merges four GPU dies into one package. This project connects to Nvidia’s upcoming Feynman GPU platform, slated for launch in 2028.

Additionally, Nvidia has initiated preliminary testing of Intel’s 18A manufacturing node — representing Intel’s most sophisticated production technology — using multiproject wafer test runs.

The broader industry dynamics are crucial here. TSMC faces unprecedented pressure from explosive AI chip demand. Bottlenecks have emerged across both cutting-edge fabrication facilities and advanced packaging operations. This crunch is driving major technology companies to explore alternative manufacturing partnerships.

Signs of Foundry Revival

For years, Intel’s foundry operations have struggled significantly. Leadership missteps enabled TSMC to establish a commanding lead in semiconductor manufacturing. However, recent developments suggest Intel may be regaining competitive footing.

Tesla CEO Elon Musk announced in April that Tesla intends to leverage Intel’s 14A process — the successor to 18A — for producing chips at its Terafab initiative, a sophisticated AI semiconductor facility under development in Austin.

Representatives from Google, Nvidia, and Intel declined to provide comments. Reuters could not independently confirm the information.

As of publication, INTC shares climbed nearly 9%, NVDA advanced approximately 2%, while GOOGL declined roughly 1%. TSM fell more than 6%.

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