Intel (NASDAQ: INTC) stock rose nearly 10% on Monday, June 8, following reports that Google (NASDAQ: GOOGL) and Nvidia (NASDAQ: NVDA) are considering the company as a backup processor manufacturer.
The report, first published by The Information, cited four people with firsthand knowledge of the ongoing discussions between the three parties, who suggested that Google had placed an order with Intel for more than 3 million Tensor Processing Units (TPUs) in 2028.
At press time, Intel shares were trading at $108.72, extending their year-to-date (YTD) rally to 176%.
Nvidia and Google deals send Intel stock sky-high
Reportedly, the order came after a prolonged period of testing for Intel’s advanced packaging technology, and Morgan Stanley estimates that Google will produce more than 6 million TPUs in the 2027–2028 period.
On the other hand, Nvidia is still in the testing phase, figuring out whether Intel can combine four graphics chips into a single unit. As such, the work relates to Nvidia’s Feynman series GPU architecture, likewise scheduled for release in 2028.
The reports of potential new deals arrive just in time to boost Intel’s already blooming agentic AI business. Indeed, Intel CEO Lip-Bu Tan had already highlighted a sharp increase in demand for the company’s data center processors at a post-keynote press event at Computex in Taipei last week.
Accordingly, the trend could translate into a significant growth opportunity if the negotiations develop into meaningful partnerships. For instance, analysts at Morgan Stanley also expect Intel’s data center revenue to grow roughly 30% year over year in 2026.
Similarly, Elon Musk said back in April that this Tesla (NASDAQ: TSLA) also plans on using Intel’s advanced 14A manufacturing process to make chips at its Terafab project, a newly planned AI chip complex in Austin.
Featured image via Shutterstock
