Intel stock makes eye-popping move on Google, Nvidia news

By Peace Longe TheStreet

Updated June 8, 2026 6:59 PM

Intel spent the second half of last week, between June 4 and 5, getting hammered alongside the rest of the chip sector.

Then things changed on Monday, June 8.

Shares of Intel (INTC) jumped about 13% to roughly $112 in early trading, one of the stock's sharpest single-day moves of the year, after two separate reports linked the company to Google and Nvidia.

Here's the reason behind the move:

Google and Nvidia's interest in Intel

Google has placed an order with Intel to manufacture more than 3 million of its tensor processing units in 2028, according to a report by The Information, as reported by Reuterson Monday, June 8.

Tensor processing units, or TPUs, are the custom chips Google designs in-house to train and run its AI models.

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The reported Google order gives Intel Foundry its largest volume validation yet, helping fulfill a years-long chase to secure elite, hyperscale tech giants for its contract chipmaking business.

Nvidia (NVDA), on the other hand, has not placed an order.

The chip leader is testing whether Intel can build a processor that fuses four graphics chips into a single unit, which will feed Nvidia's Feynman chip line, due in 2028, according to Invezz.

Google's order translates to real revenue, while Nvidia's interest is still a tryout.

Intel shares surged Monday on reports tying the chipmaker to Google and Nvidia.

NurPhoto / Getty Images

Why Google and Nvidia are looking past TSMC

Almost every advanced AI chip today is built by one company, Taiwan's TSMC, and demand has far outpaced what it can supply.

That bottleneck created an opening for Intel.

Google and Nvidia want a second source, and Intel is the only other firm racing to make cutting-edge chips on US soil.

Google's order followed months of testing Intel's advanced packaging, the step that stitches several chips into one high-performance part.

Morgan Stanley estimates that Google will build more than 6 million TPUs over 2027 and 2028, according to Investing.com, so even a slice of that volume would move the needle for Intel.

Intel's turnaround keeps stacking up deals

The Google order caps a run of wins that has turned Intel from a survival story into one of 2026's loudest comebacks.

Just days earlier, according to PR Newswire, Intel and Japan's Hitachi announced a strategic collaboration spanning factory automation, energy, and custom chips.

Deals fueling Intel's comeback

A preliminary agreement for Intel to make some Apple (AAPL) chips.
A spot in Elon Musk's Texas terafab project, which plans to use Intel's 14A manufacturing process, according to Investing.com.
Equity backing from Nvidia ($5 billion) and SoftBank ($2 billion), plus a stake taken by the US government.

Those deals explain why Intel's first-quarter results landed so well.

Revenue hit $13.58 billion, and adjusted earnings came in at 29 cents a share, far above the penny Wall Street expected, making it Intel's sixth straight quarterly beat.

What still has to go right for Intel stock

The market's excitement about Intel right now is not well justified by its actual profits, and that is a delicate situation best navigated with caution.

Intel's foundry unit lost $2.4 billion in the first quarter, its filing with the SEC shows, and the company is still burning cash as it builds capacity.

Its newest process, 18A, is only now reaching the production quality needed to make big customer orders profitable.

Three things bulls still need to see

18A and the next process, 14A, hitting yield targets so that foundry orders can actually earn money.
Nvidia'sevaluation turning into a real production order, not just a test.
Foundry losses shrinking toward breakeven instead of widening.

Wall Street stays cautious, too.

The average analyst price target hovers well below Monday's price, around $89, according to Yahoo Finance, a sign the pros think the stock already prices in plenty of good news.

Monday's roughly 13% pop also outpaced the broader chip group, which recovered only part of last Friday's selloff.

For investors, the takeaway is clear: Google's order is a genuine milestone, and the momentum driven by the deal is real.

However, Intel still has to convert headlines into steady foundry profits before its stock's valuation feels justified.

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This story was originally published June 8, 2026 at 6:37 PM.