Intel spent years being called the chipmaker that lost its lead. Its stock paid the price.
This year tells a new story, with the shares up about 169%. A fresh report just added fuel to the comeback.
The Order
Google has placed a big order with Intel. It wants more than 3 million of its own AI chips, built in 2028.
That news comes from tech outlet The Information. The report cited people close to the talks, and neither side would confirm it.
These chips are called TPUs. Google designs them to run its AI.
Building so many takes a partner with huge factory space. That is where Intel comes in.
Investors liked the news. They sent Intel shares up more than 9%.
Intel would not comment, and Google did not reply right away.
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Why Intel, Why Now
The AI boom needs more chips than the world can make. Most of that work runs through one firm, Taiwan's TSMC.
When the top supplier is swamped, buyers look for a backup. Picture the only bakery in town during a holiday rush.
Orders pile up faster than it can bake. That is TSMC right now, so Intel is trying to be the second oven.
That is why Intel's for-hire factory looks valuable again. This is the side of Intel that builds chips for other firms.
One analyst put it plainly. The biggest AI players want to spread out a supply chain that leans too much on TSMC.
There is a second reason to pick Intel. It builds chips on U.S. soil.
That keeps Google and others close to Washington, which wants more chips made at home.
The Trump team has even nudged firms to send Intel work.
A String Of Wins
Intel lost its lead to TSMC after years of missteps. Now it wants the crown back.
The Google deal caps a good run under boss Lip-Bu Tan. The firm has pulled in cash from the Trump team, Nvidia, and SoftBank.
It also landed Tesla as its first big factory customer. That deal ties Intel to Musk's new chip plant in Austin.
Word broke last month that Intel may build some chips for Apple too. Even Nvidia is testing Intel's work.
Nvidia wants to know if Intel can fuse four chips into one. But it has not placed an order yet.
For Google, the goal is bigger than one deal. It wants its own chips to rival Nvidia's, and strong TPU sales already help drive its cloud business.
Worth Noting
A 2028 order is years away, and these reports can change. Still, the trend is clear.
The firms that own AI want more than one place to get their chips. Intel spent a decade losing ground, and it is spending this year trying to win it back.
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