Intel Shares Surge as Google AI Chip Order and Possible Nvidia Deal Fuel Foundry Turnaround Hopes

Intel’s stock jumped sharply on Monday after reports suggested the company may be gaining major momentum in its chip manufacturing business through a reported Google order and a possible future Nvidia partnership. The rally came after The Information reported that Google had ordered more than 3 million specialized AI chips from Intel, while Nvidia is also evaluating Intel as a potential backup chip manufacturer. Intel shares rose more than 12% during Monday trading, making the company one of the strongest performers in the S&P 500 that day.

Google Report Lifts Confidence in Intel’s Foundry Strategy

The reported Google order is important because it would show that Intel’s contract manufacturing business is attracting serious interest from one of the world’s largest technology companies. According to Reuters, Google has reportedly ordered more than 3 million tensor processing units, or TPUs, from Intel for delivery in 2028. TPUs are custom chips designed to support artificial intelligence workloads, especially inside Google’s cloud and AI systems.

For Intel, this would be more than a normal supply agreement. The company has spent years trying to prove that it can compete as a foundry, meaning it manufactures chips designed by other companies. That market is currently led by Taiwan Semiconductor Manufacturing Company, widely known as TSMC. If Google uses Intel as a manufacturing partner, it could strengthen Intel’s image as a serious alternative supplier in the global semiconductor industry.

Possible Nvidia Deal Adds More Excitement

The market reaction was also boosted by reports that Nvidia is reviewing Intel’s technology for a possible future processor order. Nvidia has not placed an order yet, according to Reuters, but even the possibility attracted investor attention because Nvidia is the most closely watched company in the AI chip market.

A future Nvidia deal would be a major confidence signal for Intel. Nvidia depends heavily on advanced manufacturing partners to produce its high-performance chips. If Intel could win even backup manufacturing work from Nvidia, it would suggest that Intel’s production technology is becoming more competitive.

Why Investors Reacted So Strongly

Investors are watching Intel’s foundry business closely because it is central to the company’s turnaround plan. Intel has been working to rebuild its position in advanced chipmaking after losing ground to rivals. A major customer such as Google, combined with interest from Nvidia, could help convince the market that Intel’s expensive manufacturing investments may finally be paying off.

Monday’s gains also helped Intel recover from recent weakness. Investopedia reported that Intel shares had roughly tripled since the beginning of 2026, although they remained below their May highs. The stock’s strong performance reflects growing optimism around new deals, stronger results, and hopes that Intel can become a key player in AI-related manufacturing.

Intel’s Turnaround Under Lip-Bu Tan

Intel CEO Lip-Bu Tan, who became chief executive in March 2025, has been trying to reshape the company around manufacturing strength, AI demand, and stronger customer relationships. Over the weekend, Tan said Intel was still at the beginning of building a “new Intel,” a message that matched the market’s renewed optimism.

The company’s challenge is large. Building advanced chip factories is expensive, technically difficult, and slow. Winning customers like Google and possibly Nvidia would help Intel fill future manufacturing capacity and show that large technology firms trust its production roadmap.

AI Demand Is Changing the Chip Supply Chain

The reported deals also show how fast the AI chip market is changing. Demand for AI processors has grown quickly as companies build data centers for generative AI, cloud computing, machine learning, and advanced search tools. This demand has placed pressure on existing chip supply chains, especially those connected to TSMC.

Large U.S. technology companies may want more than one manufacturing partner to reduce risk. Having Intel as a second source could help Google and Nvidia avoid supply delays, improve flexibility, and support more domestic chip production. This is especially important as governments and companies focus more on semiconductor security.

Analysts Remain Divided

Even with the stock rally, Wall Street remains split on Intel. Investopedia noted that among seven analysts tracked by Visible Alpha, three had buy ratings, three had neutral ratings, and one had a sell rating. This mixed view shows that investors are excited, but not fully convinced yet.

The main concern is whether Intel can turn reported interest into long-term, profitable contracts. A stock can rise quickly on expectations, but the company still needs to deliver chips on time, meet performance standards, and prove that its foundry business can generate strong returns.

What This Means for Intel

If the reported Google order becomes a confirmed large-scale manufacturing relationship, it could mark a major step forward for Intel. The company would gain a high-profile AI customer, more credibility in the foundry market, and a stronger story for investors.

A future Nvidia order would be even more powerful because Nvidia’s AI chips are central to the global AI boom. While no Nvidia order has been confirmed, the fact that Nvidia is reportedly evaluating Intel is still meaningful. It suggests that Intel is being considered by the biggest names in artificial intelligence hardware.

Bottom Line

Intel’s latest stock surge reflects growing hope that the company’s manufacturing comeback is becoming real. Reports of a Google AI chip order and possible Nvidia interest have given investors a fresh reason to believe in Intel’s foundry strategy. Still, the company must prove that it can execute at scale. For now, the market is treating the news as a strong sign that Intel may be moving closer to becoming a major AI chip manufacturing partner.

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