Key Highlights
- Google finalized a contract with Intel for the production of more than 3 million tensor processing units (TPUs) scheduled for 2028 delivery
- Nvidia is currently assessing Intel’s 18A manufacturing process for potential use in its upcoming “Feynman” GPU platform — no formal commitment has been made
- Intel broadened its partnership with Cadence Design Systems to enhance and refine the forthcoming 14A chip production technology
- Wall Street firms including Wells Fargo ($110), Barclays ($100), and Mizuho ($128) upgraded their price targets for Intel
- Over the last year, Intel shares have increased approximately 500%
Shares of Intel (INTC) climbed more than 11% during Monday’s trading session and continued momentum at $112.44 in premarket activity Tuesday, extending gains across consecutive trading days.
The key driver behind the rally was news that Google (Alphabet) secured a production agreement with Intel for manufacturing over 3 million tensor processing units destined for 2028 delivery. This agreement followed extensive evaluation of Intel’s cutting-edge packaging capabilities and was influenced in part by limited production capacity at TSMC.
When approached by Barron’s regarding the report, Intel chose not to provide commentary.
Shares kicked off the trading week around $110.27 before climbing to a session peak of $112.54. This positions Intel with gains of approximately 500% over the trailing twelve months — a dramatic increase from the roughly $64 level when Barron’s highlighted it as a compelling investment opportunity in April.
Nvidia Explores Intel Manufacturing Options
In addition to Google, Nvidia is said to be examining whether Intel’s 18A process capabilities and EMIB packaging solutions could serve as manufacturing options for a processor that integrates four graphics chips into a single unit. This would support its future “Feynman” GPU architecture. However, no official manufacturing agreement has been established.
Nevertheless, the possibility that two industry giants in artificial intelligence computing are considering Intel for fabrication services continues to bolster investor confidence.
Cadence Partnership Extends Growth Trajectory
During Monday evening, Intel revealed an expanded strategic alliance with Cadence Design Systems. The companies indicated that this multi-year agreement focuses on advancing Intel’s upcoming 14A manufacturing process — representing the evolution beyond the existing 18A node.
Cadence provides software and hardware solutions that accelerate semiconductor design workflows. Industry analyst Patrick Moorhead from Moor Insights & Strategy emphasized the significance: “Cadence wouldn’t do this if there weren’t a high probability for high performance and mobile wafer customers for Intel 14A.”
CDNS shares responded with a 4.80% gain.
Intel CEO Lip-Bu Tan has highlighted the emergence of inference and agentic AI as a crucial catalyst. He observed that this transition is “significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Multiple Wall Street analysts elevated their price projections this week. Wells Fargo adjusted its target to $110, Barclays moved to $100, and Mizuho increased to $128 — all pointing to accelerating demand for AI data center infrastructure and the expanding importance of CPUs in agentic AI computing environments.
The overall market environment proved supportive, with the Nasdaq advancing 0.9% and the S&P 500 gaining 0.3% in Tuesday’s premarket session. Semiconductor industry peers posted widespread gains, with TSMC rising 2.80% and Nvidia climbing 1.73%.
The Google TPU manufacturing contract represents the strongest indication to date that Intel’s 18A process technology can successfully attract major hyperscale clients away from TSMC.
