What Happened?
Shares of computer processor maker Intel (NASDAQ:INTC) jumped 12.1% in the afternoon session after The Information reported that Google placed a firm order for more than 3 million of its tensor processing units to be manufactured by Intel in 2028, while Nvidia is running early trials on Intel’s most advanced 18A process for its next-generation Feynman GPU architecture.
It was the most concrete validation of Intel’s foundry turnaround in years. The Google order seems to be a commitment, not a pilot. More than 3 million TPUs for 2028, following months of testing Intel’s packaging technology, and part of a build-out that Morgan Stanley estimates could reach 6 million or more units across 2027 and 2028. TSMC faces real capacity constraints, and Google has been deliberately diversifying its manufacturing base. For Intel, the significance goes beyond the revenue. Google is among the most technically demanding chip customers in the world, and its willingness to trust Intel with proprietary AI accelerators after rigorous testing signals that Intel’s manufacturing has crossed a credibility threshold.
The Nvidia angle is unconfirmed but potentially larger: Nvidia is running multiproject wafer runs on Intel’s 18A, its most advanced 1.8-nanometer node, evaluating whether Intel can fuse four GPU dies into a single processor for its Feynman architecture due in 2028. Intel spent most of the past decade ceding manufacturing leadership to TSMC while accumulating foundry losses.
The setup looks different now. Foundry revenue grew 16% year over year in the most recent quarter, Intel’s sixth consecutive revenue beat. Nvidia acquired a $5 billion equity stake; SoftBank agreed to invest $2 billion. Tesla committed in April to use Intel’s 14A process for its Terafab AI chip project in Austin. The Google order adds the clearest external proof point yet.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. But moves this big are rare even for Intel and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 6.3% as the AVGO earnings overhang and the stronger-than-expected jobs report combined to drive one of the broadest global chip selloff of the year.
The damage spread globally: South Korea’s Kospi fell 5.5%, with Samsung down 6.4% and SK Hynix nearly 10%. European names followed: ASML fell 3.8% and Infineon lost more than 6%. Broadcom’s guidance miss reset expectations for the pace of hyperscaler AI chip spending, removing the sector’s most visible growth catalyst.
