Key Highlights
- Intel secured a confirmed contract from Google to produce more than 3 million tensor processing units (TPUs) scheduled for 2028 deployment
- Nvidia is currently assessing Intel’s 18A manufacturing process for potential use in its upcoming “Feynman” GPU platform — no commitment confirmed
- Cadence Design Systems and Intel broadened their partnership to enhance the forthcoming 14A chip production process
- Multiple analysts upgraded price targets: Wells Fargo to $110, Barclays to $100, and Mizuho to $128
- Intel shares have climbed approximately 400% over the previous year
Intel (INTC) shares experienced a significant surge exceeding 11% on Monday, continuing to trade at $112.44 during Tuesday’s premarket session, extending consecutive days of robust investor demand.
The primary driver behind this rally was news that Google (Alphabet) has committed to a substantial manufacturing agreement with Intel for over 3 million tensor processing units set for delivery in 2028. This partnership materialized following extensive evaluation of Intel’s sophisticated packaging capabilities and was influenced in part by limited availability at TSMC.
When contacted by Barron’s regarding the development, Intel chose not to provide official commentary.
Shares began Monday’s trading session around $110.27 before climbing to a peak of $112.54 during the day. This represents an impressive five-times increase over the trailing twelve months — and approximately quintupling from the level when Barron’s highlighted it as an investment opportunity in April at roughly $64.
Nvidia Explores Intel Manufacturing Options
In addition to Google, Nvidia is reportedly examining whether Intel’s 18A technology platform and EMIB packaging solutions could be suitable for producing a unified processor that merges four graphics chips. This component would support its forthcoming “Feynman” GPU generation. At present, no official manufacturing commitment has been finalized.
Nevertheless, the possibility that two industry giants in artificial intelligence computing are considering Intel for production capabilities continues to bolster investor confidence.
Cadence Partnership Strengthens Outlook
On Monday evening, Intel revealed an extended strategic collaboration with Cadence Design Systems. The companies indicated this multi-year arrangement focuses on refining Intel’s upcoming 14A manufacturing technology — representing the progression beyond the existing 18A node.
Cadence specializes in developing tools 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% increase.
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 elevated their price projections this week. Wells Fargo adjusted its target to $110, Barclays moved to $100, and Mizuho set a $128 objective — each citing growing AI datacenter requirements and the expanding importance of CPUs in agentic AI applications.
Broader market conditions offered supportive momentum, with the Nasdaq advancing 0.9% and the S&P 500 gaining 0.3% in Tuesday’s premarket trading. Chip sector stocks showed widespread strength, with TSMC rising 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 can successfully attract major cloud computing clients from TSMC.
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