Intel Surges 11% on Reported Major Google AI Chip Foundry Order

In a move reflecting a strategic shift in global semiconductor supply chains, Intel shares surged 11.19% to reach $110.27. This rally was driven by reports that the company secured a major foundry win from Google to manufacture over 3 million Tensor Processing Units (TPUs) for 2028. Additionally, reports indicate that Nvidia is considering Intel as a backup manufacturer to diversify away from TSMC, though no firm orders have been placed yet.

This news arrives as Big Tech firms seek to diversify production sources beyond Taiwan, with NVDA's market presence remaining dominant at a price of $208.39 (close June 8, 2026). In comparison to peers, TSM traded at $427.13 and AMD at $466.38 per market data (close June 8, 2026). Intel's reported contract with Google serves as a critical validation for its foundry business, which aims to challenge the dominance of Asian manufacturing giants.

Investors should watch support levels for INTC, which stood at $99.17 as of the June 5, 2026 close, while awaiting official confirmation from Google regarding production timelines. According to the economic calendar, upcoming macro catalysts such as Fed Kashkari’s speech and broader employment data could influence risk sentiment across the semiconductor sector in the coming days.