Intel shares jump after report of Google AI chip order

Shares of Intel Corporation surged on Monday following a report that Alphabet's Google has placed a significant order for artificial intelligence chips, marking a potential milestone in Intel's efforts to revitalize its manufacturing business. The stock rose as much as 13 percent, its largest single-day gain in a month, recovering from a steep selloff in semiconductor shares last week.

According to a report published Monday, Google has decided to tap Intel to manufacture more than three million of its custom tensor processing unit (TPU) AI chips, with production slated for 2028. The decision reportedly followed months of testing Intel's advanced packaging technology. While neither Intel nor Google commented on the report, the news fueled investor optimism about Intel's capacity to win major contracts in the competitive AI chip market.

The report also indicated that Nvidia is evaluating Intel's technology, including its most advanced 18A manufacturing process, for a future processor that would combine four graphics chips. Nvidia has not placed an order and is currently in a testing phase. These developments suggest that leading AI chip designers are exploring Intel as a potential...