This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) led a broad chip stock rebound Monday after a report said Google (NASDAQ:GOOG) and Nvidia (NASDAQ:NVDA) are looking at the company as a possible backup manufacturer for advanced AI chips.
Intel shares surged about 8% after The Information reported that Google has ordered more than 3 million TPUs from Intel for 2028 production. Nvidia has not placed an order yet, but is reportedly testing whether Intel technology can support a future processor that combines 4 graphics chips into 1 unit.
The move gave investors another reason to revisit Intel’s foundry story. GF Securities said Intel may be getting more aggressive on capacity, with Intel 3 capacity seen rising 80%, 18A capacity rising 100% and Intel Foundry Services potentially turning profitable in the second half of 2027.
The broader chip group also rallied. Nvidia rose about 3%, AMD (NASDAQ:AMD) gained about 5%, Marvell jumped nearly 9% and Micron (NASDAQ:MU) climbed about 8%. For investors, the takeaway is simple: Intel is suddenly being viewed less like a laggard and more like a potential second source for the AI chip supply chain.
