Intel Corporation shares rallied dramatically in pre-market trading, rising roughly 11.6%, after media reports indicated that Google and Nvidia have discussed using Intel as an alternate manufacturer for advanced processors as Taiwan Semiconductor Manufacturing Company struggles to keep up with surging demand for production capacity.
According to the reporting, which cited four people with direct knowledge of the conversations, Google has placed an order with Intel to build more than 3 million Tensor Processing Units (TPUs) in 2028. That order followed extensive testing of Intel’s advanced packaging technology - a tangible commercial milestone that helped assessors treat the report as credible.
The foundry development arrives alongside a broader AI-driven uplift already supporting Intel. Intel CEO Lip-Bu Tan has said data-center CPU demand has intensified as inference workloads proliferate, noting: "In the last four weeks, I have had all CEOs calling me, saying 'I need more CPU.'" The combination of the reported Google order and rising CPU demand has given investors a concrete narrative to back the stock move.
Analysts have highlighted the potential size of the opportunity if the relationship with Google expands. Morgan Stanley projects roughly 30% year-over-year revenue growth for Intel’s data-center segment in 2026 and estimates that Google alone could produce more than 6 million TPUs across 2027 and 2028. Those estimates, if realized and if Intel captures a meaningful share of manufacturing for those units, would amplify foundry revenue potential.
The pre-market surge in Intel stock was notable because it ran counter to a broadly negative market session. Benchmark indices were lower: the S&P 500 was down about 2.6%, the Dow Jones Industrial Average fell roughly 1.4%, and the NASDAQ declined around 4.2%. Most semiconductor peers moved lower during the risk-off trading, underscoring how this rally was driven by company-specific news rather than sector or market momentum.
From an operational perspective, the reported Google order represents a significant production commitment if executed. The source material indicates the order size exceeds 3 million TPUs in 2028, and Morgan Stanley’s modeling suggests total Google TPU production could surpass 6 million units across 2027-2028. Those figures, combined with the reported testing of Intel’s advanced packaging, serve as a potential validation point for Intel’s foundry capabilities.
Market reaction to the report suggests investors are treating the possibility of Intel acting as a backup foundry as a meaningful development for the company’s strategic repositioning. The combination of a high-profile commercial engagement with Google, the possibility that Nvidia is also evaluating Intel manufacturing, and sustained strength in data-center CPU demand has created a confluence of catalysts that allowed Intel to buck the negative tape.
Taken together, these elements reinforce the narrative that Intel’s foundry ambitions could evolve into a credible revenue driver. While the story is built on reported customer engagements and external estimates, the market move illustrates how a single, company-specific catalyst tied to manufacturing commitments and AI-driven compute demand can sharply re-rate a stock even during a widespread selloff.
Contextual note: The article above is based on reported discussions and analyst estimates described in the reporting. Where numbers and quotes are cited, they reflect the information presented in those reports and analyst commentary.