Shares of Intel moved sharply higher after reports suggested that both Google and Nvidia are increasingly viewing Intel Foundry as a strategic manufacturing alternative to TSMC. The news has strengthened investor confidence in Intel's turnaround strategy and its ambitions to become a major contract chip manufacturer.

According to reports, Google has already placed an order for more than 3 million Tensor Processing Units (TPUs) to be manufactured by Intel in 2028. The decision reportedly follows months of testing Intel's advanced packaging technologies and represents one of the largest endorsements yet of Intel's foundry business. Meanwhile, Nvidia is said to be evaluating Intel's advanced 18A process technology and testing whether Intel can manufacture complex next-generation AI processors that combine multiple graphics chips into a single package.

For Intel, these developments are highly significant. For years, investors questioned whether the company could successfully compete against TSMC in the foundry market. A confirmed Google order and Nvidia's ongoing evaluation suggest that major AI companies are actively seeking manufacturing diversification beyond Taiwan. Combined with reports of a recent foundry agreement involving Apple, Intel is increasingly positioning itself as the leading U.S.-based semiconductor manufacturing alternative.

Investor optimism was also supported by Intel's newly announced partnership with Hitachi. The collaboration focuses on "physical AI" applications, including robotics, industrial automation, and edge computing systems. This expands Intel's exposure beyond traditional PC and server markets into fast-growing AI-powered industrial sectors, creating additional long-term growth opportunities.

The stock's rally reflects growing confidence that Intel's multi-year restructuring effort is beginning to gain traction. Shares have already risen roughly 175% in 2026, making Intel one of the strongest-performing large-cap technology stocks of the year. Technical indicators also remain relatively healthy, with momentum suggesting additional upside could be possible if the stock breaks through key resistance levels.

However, some caution remains. While investors are excited about potential foundry wins, many of these projects are still years away from generating meaningful revenue. Wall Street analysts remain divided on the stock, with the consensus rating still hovering around "Hold." The average analyst price target remains below current trading levels, suggesting some believe expectations may have run ahead of fundamentals.

The key question for investors now is whether Intel can convert these early trials and partnerships into long-term manufacturing contracts. If Google's order proceeds as planned and Nvidia eventually becomes a foundry customer, Intel's transformation from a struggling chipmaker into a major AI manufacturing powerhouse could accelerate significantly over the next several years.