Key Takeaways
- Intel secured a substantial contract from Google to produce over 3 million tensor processing units (TPUs) with delivery scheduled for 2028
- Chip giant Nvidia is assessing Intel’s 18A manufacturing process for potential use in its upcoming “Feynman” GPU platform — though no contract has been finalized
- Cadence Design Systems and Intel broadened their partnership to refine the forthcoming 14A chip production technology
- Wall Street analysts upgraded price targets: Wells Fargo to $110, Barclays to $100, and Mizuho to $128
- Intel’s stock price has multiplied approximately five times over the trailing twelve months
Intel (INTC) stock rocketed more than 11% during Monday’s trading session and continued climbing to $112.44 in Tuesday’s premarket hours, extending a powerful upward momentum across consecutive days.
The primary driver behind the rally was news that Google (Alphabet) committed to a definitive manufacturing agreement with Intel for the production of more than 3 million tensor processing units slated for 2028 delivery. This significant contract materialized following extensive evaluation of Intel’s sophisticated packaging capabilities and was influenced in part by limited capacity availability at TSMC.
When approached by Barron’s for confirmation, Intel representatives declined to provide commentary on the matter.
Shares began Monday’s session around $110.27 before climbing to an intraday peak of $112.54. This performance represents approximately a fivefold increase over the past year — and marks roughly five times the valuation when Barron’s identified it as a compelling investment opportunity in April at approximately $64 per share.
Nvidia Shows Interest in Intel Foundry
Adding to the excitement, Nvidia is allegedly exploring whether Intel’s 18A manufacturing process and EMIB packaging capabilities could support production of an integrated processor that combines four graphics processors into a single unit. This potential application relates to Nvidia’s next-generation “Feynman” GPU architecture. However, no official purchase order has been issued at this time.
Nonetheless, the possibility that two dominant players in artificial intelligence computing are considering Intel for their manufacturing requirements continues to fuel positive market sentiment.
Cadence Partnership Strengthens Intel’s Position
On Monday evening, Intel revealed an extended collaboration with Cadence Design Systems. The companies indicated this multi-year agreement focuses on enhancing Intel’s upcoming 14A production process — representing the evolution beyond the existing 18A technology node.
Cadence specializes in 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 favorably, gaining 4.80%.
Intel CEO Lip-Bu Tan has pointed to the rise of inference and agentic AI as a key driver. He noted the shift is “significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Multiple Wall Street firms adjusted their price projections upward this week. Wells Fargo elevated its target to $110, Barclays increased to $100, and Mizuho raised to $128 — all referencing intensifying AI data center requirements and the expanding importance of CPUs in agentic AI computing tasks.
The overall market environment offered supportive conditions, with the Nasdaq advancing 0.9% and the S&P 500 gaining 0.3% in Tuesday’s premarket trading. Semiconductor industry counterparts showed broad strength, with TSMC climbing 2.80% and Nvidia advancing 1.73%.
The Google TPU manufacturing agreement represents the most tangible evidence to date that Intel’s 18A process technology possesses the capability to attract major hyperscale clients away from TSMC’s dominance.
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