TLDR
- Google placed a firm order with Intel to manufacture over 3 million tensor processing units (TPUs) for 2028 delivery
- Nvidia is evaluating Intel’s 18A process for its next-generation “Feynman” GPU architecture — no order placed yet
- Intel expanded its deal with Cadence Design Systems to optimize the upcoming 14A chip manufacturing process
- Analyst price targets were raised by Wells Fargo ($110), Barclays ($100), and Mizuho ($128)
- Intel stock has risen roughly fivefold in the past 12 months
Intel (INTC) stock surged more than 11% Monday and was trading at $112.44 in premarket Tuesday, building on back-to-back sessions of strong buying pressure.
The primary catalyst was a report that Google (Alphabet) placed a firm order with Intel to manufacture more than 3 million tensor processing units for 2028 delivery. The deal came after months of testing Intel’s advanced packaging technology and was partly driven by capacity constraints at TSMC.
Intel declined to comment to Barron’s on the report.
The stock opened the week near $110.27 before running to an intraday high of $112.54. That puts Intel up roughly fivefold over the past 12 months — and up approximately five times from where Barron’s flagged it as a stock pick in April when it was trading around $64.
Nvidia Is Also Watching
Beyond Google, Nvidia is reportedly evaluating whether Intel’s 18A process and EMIB packaging technology can be used to manufacture a processor combining four graphics chips into one unit. That would be for its next-generation “Feynman” GPU architecture. No formal order has been placed.
Still, the prospect of two of the biggest names in AI computing turning to Intel for manufacturing is keeping sentiment elevated.
Cadence Deal Adds to the Momentum
Late Monday, Intel also announced an expansion of its collaboration with Cadence Design Systems. The two companies said the multiyear deal is aimed at optimizing Intel’s future 14A manufacturing process — the next step beyond the current 18A node.
Cadence makes software and hardware that speed up chip design. Analyst Patrick Moorhead of Moor Insights & Strategy said the deal speaks for itself: “Cadence wouldn’t do this if there weren’t a high probability for high performance and mobile wafer customers for Intel 14A.”
CDNS stock was up 4.80% in response.
Intel CEO Lip-Bu Tan has pointed to the rise of inference and agentic AI as a key driver. He noted the shift is “significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Several analysts raised their price targets this week. Wells Fargo moved to $110, Barclays to $100, and Mizuho to $128 — all citing accelerating AI data center demand and the growing role of CPUs in agentic AI workloads.
The broader market provided a helpful backdrop, with the Nasdaq up 0.9% and the S&P 500 up 0.3% in premarket Tuesday. Semiconductor peers were broadly higher, with TSMC up 2.80% and Nvidia up 1.73%.
The Google TPU order remains the most concrete sign yet that Intel’s 18A process can pull hyperscale customers away from TSMC.
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