Alphabet’s Google has ordered more than 3 million tensor processing units from Intel for production in 2028. The order is Intel Foundry’s largest external manufacturing win so far and is centered on advanced Artificial Intelligence chips. Nvidia is running early trials on Intel’s 18A process and reviewing Intel for future GPU and processor manufacturing.
The two deals point to broader industry interest in diversifying chip manufacturing beyond TSMC. Intel, traded as NasdaqGS:INTC, is drawing fresh attention as a potential manufacturing partner for some of the biggest Artificial Intelligence chip buyers. Google’s order and Nvidia’s process trials provide concrete signs that major customers are evaluating Intel as part of future hardware supply chains.
The stock closed at $107.04, with a very large 1 year return and a 171.8% gain year to date, even though it is down 5% over the past week and 17.3% over the past month. Those moves frame a company already under close investor scrutiny as the market weighs how new foundry wins could affect Intel’s long-term manufacturing role.
At $107.04, the stock is about 16% above the $92.17 analyst price target range midpoint. Shares are trading 88.4% above the platform’s estimated fair value, flagging a rich valuation. The stock has fallen 17.3% over the last 30 days, so near term sentiment has cooled.
Google and Nvidia using Intel’s foundry services reinforces the idea that large Artificial Intelligence customers are willing to diversify suppliers. Important factors to watch include updates on 18A capacity, long term foundry contracts, and how much of future revenue is tied to external manufacturing rather than internal chips. Execution setbacks on these deals could have an outsized share price impact given flagged minor risks including recent dilution and share price volatility.
