<\/p>\n
Intel spent the second half of last week, between June 4 and 5, getting hammered alongside the rest of the chip sector.<\/p>\n
Then things changed on Monday, June 8.<\/p>\n
Shares of Intel (INTC) jumped about 13% to roughly $112 in early trading, one of the stock\u2019s sharpest single-day moves of the year, after two separate reports linked the company to Google and Nvidia.<\/p>\n
Here\u2019s the reason behind the move:<\/p>\n
Google and Nvidia\u2019s interest in Intel<\/p>\n
Google has placed an order with Intel to manufacture more than 3 million of its tensor processing units in 2028, according to a report by The Information,\u00a0as reported\u00a0by Reuterson Monday, June 8. <\/p>\n
Tensor processing units, or TPUs, are the custom chips Google designs in-house to train and run its AI models.<\/p>\n
More AI Chip Stocks:<\/p>\n
Citi resets Intel stock price target for the rest of 2026Deutsche Bank revamps Intel stock price target for 2026Stock Market Today: Nasdaq rebounds as chip names recover<\/p>\n
The reported Google order gives Intel Foundry its largest volume validation yet, helping fulfill a years-long chase to secure elite, hyperscale tech giants for its contract chipmaking business.<\/p>\n
Nvidia (NVDA), on the other hand, has not placed an order. <\/p>\n
The chip leader is testing whether Intel can build a processor that fuses four graphics chips into a single unit, which will feed Nvidia\u2019s Feynman chip line, due in 2028, according to Invezz.<\/p>\n
Google\u2019s order translates to real revenue, while Nvidia\u2019s interest is still a tryout.<\/p>\n
Intel shares surged Monday on reports tying the chipmaker to Google and Nvidia.<\/p>\n
NurPhoto / Getty Images<\/p>\n
Why Google and Nvidia are looking past TSMC<\/p>\n
Almost every advanced AI chip today is built by one company, Taiwan\u2019s TSMC, and demand has far outpaced what it can supply.<\/p>\n
That bottleneck created an opening for Intel. <\/p>\n
Google and Nvidia want a second source, and Intel is the only other firm racing to make cutting-edge chips on US soil.<\/p>\n
Related: Intel’s new AI chip skips the costly memory Nvidia relies on<\/p>\n
Google\u2019s order followed months of testing Intel\u2019s advanced packaging, the step that stitches several chips into one high-performance part.<\/p>\n
Morgan Stanley estimates that Google will build more than 6 million TPUs over 2027 and 2028, according to Investing.com, so even a slice of that volume would move the needle for Intel.<\/p>\n
Intel\u2019s turnaround keeps stacking up deals<\/p>\n
The Google order caps a run of wins that has turned Intel from a survival story into one of 2026\u2019s loudest comebacks.<\/p>\n
Just days earlier, according to PR Newswire, Intel and Japan\u2019s Hitachi announced a strategic collaboration spanning factory automation, energy, and custom chips.<\/p>\n
Deals fueling Intel\u2019s comebackA preliminary agreement for Intel to make some Apple (AAPL) chips.A spot in Elon Musk\u2019s Texas terafab project, which plans to use Intel\u2019s 14A manufacturing process, according to Investing.com.Equity backing from Nvidia ($5 billion) and SoftBank ($2 billion), plus a stake taken by the US government.<\/p>\n
Those deals explain why Intel\u2019s first-quarter results landed so well. <\/p>\n
Revenue hit $13.58 billion, and adjusted earnings came in at 29 cents a share, far above the penny Wall Street expected, making it Intel\u2019s sixth straight quarterly beat.<\/p>\n
What still has to go right for Intel stock<\/p>\n
The market\u2019s excitement about Intel right now is not well justified by its actual profits, and that is a delicate situation best navigated with caution.<\/p>\n
Intel\u2019s foundry unit lost $2.4 billion in the first quarter, its filing with the SEC shows, and the company is still burning cash as it builds capacity.<\/p>\n
Its newest process, 18A, is only now reaching the production quality needed to make big customer orders profitable.<\/p>\n
Three things bulls still need to see18A and the next process, 14A, hitting yield targets so that foundry orders can actually earn money.Nvidia\u2019sevaluation turning into a real production order, not just a test.Foundry losses shrinking toward breakeven instead of widening.<\/p>\n
Wall Street stays cautious, too. <\/p>\n
The average analyst price target hovers well below Monday\u2019s price, around $89, according to Yahoo Finance, a sign the pros think the stock already prices in plenty of good news.<\/p>\n
Monday\u2019s roughly 13% pop also outpaced the broader chip group, which recovered only part of last Friday\u2019s selloff.<\/p>\n
For investors, the takeaway is clear: Google\u2019s order is a genuine milestone, and the momentum driven by the deal is real.<\/p>\n
However, Intel still has to convert headlines into steady foundry profits before its stock\u2019s valuation feels justified.<\/p>\n
Related: Marvell leads chip wreck unseen since the pandemic<\/p>\n
#Intel #stock #eyepopping #move #Google #Nvidia #news<\/p>\n","protected":false},"excerpt":{"rendered":"
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