Intel shares are surging strongly at the open of Monday’s session following reports that Google and Nvidia are considering using the U.S. manufacturer as an alternative supplier of advanced chips.
According to Reuters, the talks are primarily aimed at securing manufacturing capacity outside of TSMC, whose production lines and advanced packaging remain heavily loaded. Technology sector leaders are increasingly concerned that delivery timeliness from Taiwanese facilities may turn out to be worse than market expectations.
The key point in the discussions is the report that Google is said to have placed an order with Intel to manufacture more than 3 million TPU (Tensor Processing Unit) chips in 2028.
TPUs are Google processors designed for training and running AI models. The order reportedly came after months of testing Intel’s advanced packaging technology. Morgan Stanley estimates that Google could produce a total of more than 6 million TPUs in 2027–2028. This represents a consistent effort by one of the technology giants, which has long been trying to diversify its component supply to reduce dependence on Nvidia.
In Nvidia’s case, the statements are much more cautious. The company has reportedly not placed an order yet, but it is testing Intel’s capabilities for manufacturing future chips. According to the report, Nvidia is evaluating, among other things, a technology that would allow four graphics chips to be combined into a single unit, which is expected to be related to the Feynman architecture planned for 2028.
Nvidia is also conducting early trials on the “18A” process - Intel’s most advanced manufacturing technology.
For Intel, these reports are important because they strengthen the narrative of rebuilding the company’s market position, or even of a more distant expansion. At the same time, valuations have already seen a powerful growth wave, and the market should not interpret this information as a straightforward replacement of TSMC.
Intel is expected to serve as an additional and/or backup source of manufacturing capacity and supply-chain security. Intel’s production capabilities are still in their infancy relative to the company’s forecasts, and from an accounting perspective the business is still operating at a loss.
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