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Intel (INTC) shares ripped higher on June 8 following a report that Google has picked the company to fabricate its next-generation artificial intelligence (AI) chips.
The news instantly reignited investor confidence in INTC’s long-struggling foundry business and its broader turnaround under CEO Lip-Bu Tan.
Including today’s gains, Intel stock is up an incredible 175% versus the start of this year.
What Google Deal Really Means for Intel Stock
According to The Information, Google has approached Intel as rival Taiwan Semiconductor (TSM) remains challenged in keeping pace with surging demand.
The giant placed the order after months of testing INTC’s technology, with the multinational now set to begin manufacturing its specialized artificial intelligence chips or Tensor Processing Units (TPUs) in 2028.
INTC shares rallied primarily on the sheer scale of this deal: the hyperscaler has reportedly ordered more than 3 million TPUs for 2028.
For Intel, this means multi-year visibility into foundry revenue and a much-needed validation of its advanced process technology; it strengthens the company’s turnaround narrative and positions its foundry unit as a credible player in AI-era manufacturing.
Why Else Are INTC Shares Rallying Today?
Intel shares extended gains on Monday because the titan announced a strategic collaboration with Hitachi as well.
Its deal with the Japanese conglomerate aims to accelerate physical AI, advanced computing, and next-generation digital infrastructure across sectors, including energy and manufacturing.
Investors cheered the news mostly because it creates new, recurring demand for INTC’s advanced compute and edge-AI platforms.
More importantly, even Nvidia (NVDA) is reportedly evaluating Intel’s manufacturing technology to assess whether it can produce the processor for its upcoming GPU architecture.
Combined with a major recent win from Foxconn, these partnerships signal continued momentum for Intel Foundry, which could take its share price to record levels as the year unfolds.
What’s the Consensus Rating on Intel?
Investors should note that some Wall Street analysts believe INTC stock still has significant room to the upside.
While the consensus rating on Intel sits at “Hold” only, price objectives on the semiconductor behemoth go as high as $150, indicating potential upside of another 35% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
