- Intel shares rose 10% amid reports of Google and Nvidia considering Intel as backup chip maker
- Google reportedly ordered over three million TPUs from Intel for 2028 production
- Nvidia is evaluating Intel's tech for a processor integrating four GPUs, no order confirmed
Intel shares opened 10% higher on Monday amid reports that tech giants Google and Nvidia are considering Intel as their back up chip maker.
The shares were trading 10% higher at $108.75, however the shares had jumped more than 13% in pre-market trading, reflecting investor optimism over the potential business opportunities from major AI industry players.
Google, a subsidiary of Alphabet, has reportedly placed an order with Intel to manufacture more than three million Tensor Processing Units (TPUs) in 2028, according to a report by The Information citing sources familiar with the matter.
The report added that Nvidia has not yet committed to an order with Intel. However, the AI chipmaker is said to be assessing whether Intel's manufacturing technology can be used to develop a processor that integrates four graphics processing units (GPUs) into a single package.
ALSO READ: AI Diversification: Google, Nvidia Bet On Intel As Backup Chip Maker, Says Report
Intel and Google in April had entered into a multi-year partnership aimed at advancing next-generation AI and cloud infrastructure, underscoring the growing importance of CPUs and custom infrastructure processing units (IPUs) in supporting increasingly complex AI workloads.
The two companies are also expanding their joint development of custom ASIC-based IPUs. These programmable accelerators are designed to handle networking, storage and security tasks that would otherwise be processed by host CPUs. By offloading these functions, the IPUs help improve system utilisation, enhance efficiency and deliver more consistent performance across large-scale AI and cloud environments.
Similarly, Nvidia had announced plans in 2025 to invest $5 billion in Intel as part of a broader strategic partnership aimed at accelerating semiconductor innovation. Under the arrangement, the companies are expected to collaborate on data-centre and PC chips, while Nvidia would become one of Intel's largest shareholders with an approximately 4% stake. According to the announcement, Nvidia's investment was priced at $23.28 per share.
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