Intel Shares Jump 13% on Google Order of 3 Million AI Chips
INTC•Alphabet’s Google plans to source over 3 million specialized AI chips (TPUs) from Intel by 2028 after testing the chipmaker’s technology, as TSMC struggles with capacity. Intel shares jumped 13% to $112.37 in New York, tripling year-to-date, supported by a record sales forecast and a multi-billion-dollar packaging backlog.
1. Google Taps Intel for AI Chip Orders
Alphabet’s Google will rely on Intel to manufacture more than 3 million tensor processing units by 2028, selecting its AI chip technology after extensive testing and amid Taiwanese foundry capacity constraints.
2. Market Reaction and Share Performance
Intel shares surged as much as 13% to reach $112.37 in New York trading, marking the largest one-day gain in a month and tripling the stock’s value so far this year on optimism around AI demand.
3. Packaging Services Backlog
Intel’s chip packaging division has built a backlog worth billions of dollars, as customers leverage multi-chip packaging to boost data center performance without relying solely on full-scale foundry processing.
4. Potential Nvidia Collaboration
Nvidia is evaluating Intel’s process technology for an upcoming processor that integrates four graphics dies into a single unit, indicating broadening interest in Intel’s advanced packaging and foundry capabilities.
