Google and Nvidia consider Intel as backup chip manufacturer for AI silicon, Intel shares jump about 12 percent
Intel $INTC shares jumped about 12 percent after reports that Google $GOOGL and Nvidia $NVDA are weighing it as a backup chip manufacturer. Per The Information, Google has tapped Intel to build AI processors in 2028, easing reliance on TSMC $TSM. Nvidia is still testing Intel's 1
Intel shares jumped about 12 percent on June 8 after reports that two of the biggest names in AI computing, Google and Nvidia, are weighing the company as a backup chip manufacturer. According to The Information, Google has committed to having Intel produce more than three million of its custom tensor processing units in 2028, a vote of confidence that followed months of testing Intel's advanced packaging. Nvidia has not placed an order, but is evaluating whether Intel's 18A manufacturing process and packaging can be used to build a processor that combines multiple graphics chips into a single unit. The interest matters because the entire AI hardware industry leans heavily on a single supplier, Taiwan's TSMC, for its most advanced chips. That concentration has become a strategic and supply-chain concern as demand for AI accelerators keeps outrunning available capacity. Lining up Intel as a second source would give hyperscalers more resilience, and it would mark a turnaround for Intel's contract-manufacturing ambitions, which have struggled to win marquee external customers.