Intel (INTC) Stock Soars 11% Following Major Google TPU Contract and Cadence Partnership

Key Highlights

Table of Contents

Intel secured a significant contract from Google to produce more than 3 million tensor processing units (TPUs) scheduled for 2028 shipment
Nvidia is assessing Intel’s 18A manufacturing process for potential use in its upcoming “Feynman” GPU platform — though no formal contract exists
Cadence Design Systems broadened its collaboration with Intel to enhance the forthcoming 14A chip production technology
Multiple Wall Street firms upgraded their price targets: Wells Fargo to $110, Barclays to $100, and Mizuho to $128
INTC shares have climbed approximately 500% over the trailing twelve months

Shares of Intel (INTC) rocketed over 11% during Monday’s session and continued trading at $112.44 in Tuesday’s premarket hours, extending a powerful two-day rally.

Intel Corporation, INTC

The primary driver behind this surge was news that Google (Alphabet) has committed to a substantial order with Intel for the production of over 3 million tensor processing units set for delivery in 2028. This agreement followed extensive evaluation of Intel’s cutting-edge packaging capabilities and was influenced in part by limited capacity availability at TSMC.

When approached by Barron’s regarding the report, Intel chose not to provide commentary.

Shares began Monday’s trading session around $110.27 before climbing to an intraday peak of $112.54. This performance represents approximately a 500% increase over the past year — and roughly five times higher than the $64 level where Barron’s identified it as a compelling investment opportunity back in April.

Nvidia Explores Intel Manufacturing Options

Apart from the Google deal, Nvidia is allegedly examining whether Intel’s 18A process technology and EMIB packaging solution could manufacture a processor that integrates four graphics chips into a single unit. This would support its upcoming “Feynman” GPU generation. However, no official purchase agreement has been finalized.

Nevertheless, the possibility that two industry leaders in artificial intelligence computing might utilize Intel for chip production continues to fuel positive investor sentiment.

Cadence Collaboration Boosts Confidence

On Monday evening, Intel revealed an expanded partnership with Cadence Design Systems. The companies stated this multi-year agreement focuses on refining Intel’s upcoming 14A manufacturing technology — representing the generation following the current 18A node.

Cadence develops software and hardware solutions that accelerate chip design workflows. Industry analyst Patrick Moorhead from Moor Insights & Strategy emphasized the significance: “Cadence wouldn’t do this if there weren’t a high probability for high performance and mobile wafer customers for Intel 14A.”

CDNS shares responded positively, climbing 4.80%.

Intel CEO Lip-Bu Tan has highlighted the emergence of inference and agentic AI as a crucial catalyst. He emphasized this transition is “significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”

Multiple Wall Street analysts elevated their price forecasts this week. Wells Fargo increased its target to $110, Barclays moved to $100, and Mizuho raised its outlook to $128 — all referencing strengthening AI data center demand and the expanding importance of CPUs in agentic AI applications.

Favorable market conditions also provided support, with the Nasdaq climbing 0.9% and the S&P 500 advancing 0.3% in Tuesday’s premarket trading. Semiconductor stocks broadly posted gains, including TSMC, which rose 2.80%, and Nvidia, which advanced 1.73%.

The Google TPU manufacturing agreement represents the strongest evidence to date that Intel’s 18A process technology can successfully attract hyperscale cloud customers away from TSMC’s dominance.

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