Intel jumps after report of possible Google chipmaking deal, Nvidia talks raise backup-manufacturer hopes

Intel shares surged Monday after a report that the company struck a chipmaking arrangement tied to Google and that another, involving Nvidia, could follow. In trading reported by Investopedia, Intel was up more than 12% as the news helped lift the broader S&P 500, after losses in late-week tech stocks. The same report said Intel declined to comment, while Google and Nvidia did not respond to requests in time for publication.

According to reporting cited by Reuters through Marketscreener and other reprints, Google, a unit of Alphabet, placed an order with Intel for more than three million tensor processing unit chips, or TPUs, for 2028. TPU is Google’s in-house family of AI accelerators used to run large-scale machine-learning workloads. The reports characterized the arrangement as a manufacturing deal that would strengthen Intel’s contract-manufacturing, or “foundry,” business.

The same Reuters-cited reporting said Nvidia is also evaluating whether Intel technology could be used to manufacture a processor that combines four graphics chips into a single unit. It also noted that Nvidia had not yet placed an order. Nvidia and Alphabet’s share moves were more modest than Intel’s in Investopedia’s account, with Alphabet down about 1% and Nvidia up about 1% on the day.

Markets reaction to the news appeared to extend beyond the headline deal. Marketscreener reported Intel shares rose more than 9% in early trading, with the potential deal adding to a roughly 169% year-to-date gain described in the Reuters-cited writeup. Investopedia said the rally also helped Intel recoup some of the losses from the previous week’s broader pullback in tech.

Investors have been watching whether Intel’s shift back toward manufacturing for outside customers can translate into credible, repeatable demand. In Investopedia’s framing, manufacturing agreements with Google and Nvidia would be a “major win” for Intel’s foundry business and could boost confidence in the company’s turnaround. The report also noted that Wall Street views remain split, with analysts tracked by Visible Alpha showing three “buy” ratings, three “neutral” and one “sell” among seven analysts.

The reports come as the AI-chip supply chain has faced persistent bottlenecks and concentration risks around leading foundries. Marketscreener said the surge in demand tied to AI has strained capacity at TSMC, prompting major AI chip designers to consider Intel as an alternative. It also cited an eMarketer technology analyst, Jacob Bourne, who framed the development as evidence that large AI players are competing to diversify a supply chain still heavily concentrated at TSMC.

Still, key details remain unconfirmed. In the Investopedia account, Intel declined to comment and Google and Nvidia did not respond to requests for comment before publication, while Reuters reported it could not verify the information independently. Neither report provided terms such as pricing, volumes beyond the reported scale, manufacturing process nodes, or delivery schedules, and it remains unclear how any potential Nvidia engagement would map onto Intel’s existing production plans.