Intel Secures Chip Deals with Google and Nvidia Amid AI Boom

Intel has recently secured chip deals with tech giants Google and Nvidia as the AI market continues to expand . The deals, specifically a 3 million AI chip order from Google for 2028, demonstrate Intel's position as a supplier of choice for leading companies. However, AMD, Intel's competitor, has made significant strides in the AI chip market with its partnership with TSMC and investments in AI development, resulting in 38% revenue growth in Q1 2026 . AMD's strong performance in the AI CPU market makes its stock a potential alternative to Intel.

Intel Foundry's simultaneous engagement with two of the world's largest AI compute buyers validates its 18A process node as a credible TSMC alternative. The Google order is a confirmed production contract — 3 million custom TPU chips for delivery by 2028, following extensive testing of Intel's advanced packaging systems. The Nvidia relationship is at an earlier stage: Nvidia is running qualification trials on Intel's 18A node, testing its ability to manufacture a processor fusing four GPUs into a single package, tied to Nvidia's "Feynman" GPU architecture planned for 2028. Nvidia has not yet placed a production order, but the trials alone represent a meaningful validation for Intel's foundry ambitions.

INTC shares surged approximately 12% on June 8 on news of both deals, recovering meaningful ground from its 2025 lows. The strategic significance extends beyond these individual contracts: TSMC CEO C.C. Wei has acknowledged that global chip supply will not meet AI demand for years, creating a structural opening for Intel to capture overflow demand. For investors, the key watch item is whether the Nvidia qualification trial converts to a production order — that would represent a step-change in Intel Foundry's revenue trajectory and credibility with the market.