Intel led a broad rebound in chip stocks Monday as investors reassessed the company’s role in the Artificial Intelligence chip supply chain. The rally followed a report that Google and Nvidia are looking at Intel as a possible backup manufacturer for advanced Artificial Intelligence chips, giving the market a fresh reason to revisit the company’s foundry ambitions.
Intel shares surged about 8% after The Information reported that Google has ordered more than 3 million TPUs from Intel for 2028 production. Nvidia has not placed an order yet, but is reportedly testing whether Intel technology can support a future processor that combines 4 graphics chips into 1 unit. The potential customer interest pointed to a possible shift in how investors view Intel’s manufacturing business, particularly if major chip designers seek additional production options.
The move gave investors another reason to revisit Intel’s foundry story. GF Securities said Intel may be getting more aggressive on capacity, with Intel 3 capacity seen rising 80%, 18A capacity rising 100% and Intel Foundry Services potentially turning profitable in the second half of 2027. Those expectations helped frame Intel less as a laggard and more as a potential second source for advanced Artificial Intelligence chip production.
The broader chip group also rallied. Nvidia rose about 3%, AMD gained about 5%, Marvell jumped nearly 9% and Micron climbed about 8%. The gains suggested that optimism around Artificial Intelligence infrastructure and semiconductor manufacturing extended beyond Intel, even as Intel drew the most attention from the reported foundry interest.
