Intel stock rallies on reports of foundry wins from Google and Nvidia

Intel INTC shares are pushing higher on Monday after The Information said Google and Nvidia are turning to the semiconductor firm as a vital manufacturing backup to TSMC.

INTC now looks headed to challenge is 20-day moving average (MA), with a decisive break above $115 expected to accelerate bullish momentum in the near-term.

Intel stock has been a rather lucrative investment in 2026, currently up some 175% versus the start of this year.

Have Google and Nvidia placed an order with Intel Foundry?

According to The Information, a team up with Google isn’t just a rumour, it’s a concrete order. The giant has already placed an order with Intel to manufacture more than 3 million of its TPUs (tensor processing units) in 2028.

Google spent months testing the company’s advanced packaging, and this order serves as a major vote of confidence that Intel can handle hyperscale AI silicon production, the report added.

On the other hand, Nvidia hasn’t signed a firm contract yet, but it’s actively running early trials on INTC’s most advanced 18A manufacturing process and evaluating its advanced packaging.

Specifically, the behemoth is testing whether Intel can successfully fabricate a complex processor that fuses four graphics chips into a single unit – a design crucial for its upcoming Feynman GPU architecture.

Significance of Google and Nvidia deal for Intel stock

Investors are cheering INTC because these potential partnerships could prove to be a game-changer for them over time. For years, Street doubted whether Intel Foundry could truly compete with TSMC or win top-tier tech clients.

Landing Google as a customer and getting Nvidia to test its flagship 18A node, as The Information report suggests serves as a major validation of the company’s turnaround strategy.

Combined with the Apple foundry deal from last month, it’s fair to state that Intel is finding success in positioning itself as the premier US-based alternative to TSMC.  

And that’s primarily why Intel shares are ripping higher today.

Why else are INTC shares in the ‘green’ today?

INTC shares are extending gains on Jun 8 also because the company has partnered with Hitachi as well.  

The collaboration focuses on accelerating “physical AI” capabilities, integrating Intel’s advanced silicon solutions into robotics, industrial automation, and real-world edge computing systems.

Investors are viewing this as a major win that expands INTC’s footprint beyond traditional data centers and PC markets into high-growth industrial AI verticals.

Even from a technical perspective, Intel’s relative strength index (14-day) currently sits in the mid-50s, indicating significant further room to the upside before the stock hits “overbought” territory.

That said, Wall Street seems to believe that INTC’s rally in 2026 has gone a bit too far.

The consensus rating on Intel Corp remains at “hold” only, with the mean price target of about $98 indicating potential downside of more than 10% from current levels.