Intel Gains 10% After Talks with Google and Nvidia
Date: 8 June 2026
Intel shares surged by 10% at the start of Monday's trading session following reports that Google and Nvidia are considering Intel as an alternative supplier for advanced chips. This development comes amid concerns regarding the production capacity of TSMC, which has been heavily loaded, leading technology sector leaders to seek additional manufacturing options.
Key Developments
- Google is reportedly in discussions with Intel to secure manufacturing capacity, having placed an order for over 3 million Tensor Processing Units (TPUs) for 2028. These TPUs are specifically designed for training and running AI models.
- According to Morgan Stanley, Google may produce more than 6 million TPUs in total during 2027-2028, indicating a strategic move to diversify its supply chain and reduce reliance on Nvidia.
- Nvidia, while not placing an order yet, is testing Intel's manufacturing capabilities, particularly focusing on a technology that could combine four graphics chips into a single unit, related to the planned Feynman architecture for 2028.
- Nvidia is also conducting trials on Intel's advanced "18A" manufacturing process.
Implications for Intel
This news is significant for Intel as it reinforces the company's efforts to rebuild its market position and potentially expand its operations. However, it is important to note that Intel's production capabilities are still developing, and the company is currently operating at a loss.
Market analysts suggest that Intel's role may be as an additional or backup source of manufacturing capacity, rather than a direct replacement for TSMC. The stock's recent performance has seen a rebound from the 50% Fibonacci level, with expectations of testing resistance zones between the 61.8% and 76.4% Fibonacci levels.