Here\u2019s the reason behind the move:<\/p>\n
Google and Nvidia\u2019s interest in Intel<\/h2>\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:<\/strong><\/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 NurPhoto / Getty Images<\/p>\n<\/figcaption><\/figure>\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<\/strong><\/p>\n Google\u2019s order followed months of testing Intel\u2019s advanced packaging<\/strong>, 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 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 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 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 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<\/strong>: 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<\/strong><\/p>\n #Intel #stock #eyepopping #move #Google #Nvidia #news<\/p>\n","protected":false},"excerpt":{"rendered":" Intel spent the second half of last week, between June 4 and 5, getting hammered alongside the rest of the chip sector. Then things changed on Monday, June 8. Shares… <\/p>\n","protected":false},"author":1,"featured_media":6360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[5131,744,1907,233,1222,330,91],"class_list":["post-6359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-eyepopping","tag-google","tag-intel","tag-move","tag-news","tag-nvidia","tag-stock"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6359"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/6360"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAzMDcwNTEy\/photo-3070512.jpg?profile=rss\")
Why Google and Nvidia are looking past TSMC<\/h2>\n
Intel\u2019s turnaround keeps stacking up deals<\/h2>\n
Deals fueling Intel\u2019s comeback<\/h3>\n
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What still has to go right for Intel stock<\/h2>\n
Three things bulls still need to see<\/h3>\n
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