New York, June 10, 2026, 18:06 EDT
- Intel last traded at $107.04, off roughly 0.8% on the day, with shares moving between $103.66 and $111.38.
- Shares are moving on a report that Google placed an order for over 3 million TPUs built by Intel for delivery in 2028. Reuters said it wasn’t able to independently confirm the story.
- The Philadelphia Semiconductor Index dropped 3.6% as the S&P 500 technology sector slipped into correction territory.
Intel shares slipped Wednesday, with the stock pulled in different directions by a reported Google order and selling in AI chip names. The Google deal could back Intel’s foundry move, but the broader selloff in AI-tied semi stocks weighed. Intel last traded at $107.04, off $0.88, after a volatile day.
The drop was small against the wider hit to chips. The Philadelphia Semiconductor Index sank 3.6% Wednesday, led lower by Nvidia and Broadcom. According to Reuters, investors booked gains in tech and raised flags on high valuations, inflation, and U.S.-Iran worries.
Intel is still drawing investor attention after The Information said Monday that Alphabet’s Google ordered more than 3 million tensor processing units from the chipmaker for 2028. TPUs are special chips Google designed for AI workloads. Intel would not comment. Alphabet and Nvidia didn’t respond to Reuters. Reuters also said it couldn’t verify the report.
Intel is in focus as even a potential order plays into the main question for investors: can Intel Foundry get real traction with outside clients. The foundry arm manufactures chips for others. Reuters said Nvidia is looking at Intel’s tech for a possible processor that would use four graphics chips, but Nvidia hasn’t bought anything yet.
Intel shares jumped 11.2% Monday after Reuters reported a Google order, as the Philadelphia Semiconductor Index rebounded 5.6% from a recent drop. The market jumped at signs of outside demand.
Supply chain is front and center here. Taiwan Semiconductor Manufacturing Co. is still the top foundry for leading-edge chips. But Reuters reported that demand for AI chips is outpacing what TSMC can deliver. As a result, top AI chip designers are considering Intel. “Evidence that AI’s biggest players are racing to diversify a supply chain still heavily concentrated in TSMC,” Jacob Bourne, technology analyst at eMarketer, said. Reuters
Intel said first-quarter revenue reached $13.6 billion, a 7% rise from last year. Data Center and AI brought in $5.1 billion, up 22%. CEO Lip-Bu Tan is steering Intel toward AI computing, CPUs and packaging, moving away from focusing mostly on PC chips.
Intel’s foundry arm remains deep in the red. The company’s Q1 report showed Intel Foundry revenue at $5.421 billion, but with an operating loss of $2.437 billion. External foundry and assembly-and-test brought in $174 million, up from $31 million last year, though most of the business still serves Intel’s own products, not outside clients.
Another item in the turnaround story this week: Cadence Design Systems said it’s broadening its partnership with Intel Foundry. The move is aimed at getting Intel 14A, Intel’s next-gen manufacturing node, up to speed. They’re committing to deliver production-ready process design kits, or PDKs—the tech files chip designers need to develop for a specific manufacturing node.
Naga Chandrasekaran, Intel Foundry’s EVP and general manager, said the Cadence work shows the company’s “continued focus on delivering on its technology roadmap and ecosystem.” Foundry customers look for reliability in both manufacturing and the design tools they use to get chips done on schedule. Business Wire
Investors may be pricing in a foundry win for Intel before it’s confirmed. The Google order has only been reported in the press, with no formal word from Intel or Alphabet. Nvidia is said to be looking at Intel but hasn’t put in an order. Any volume from those efforts wouldn’t show up until 2028. Intel, for its part, warned in its Q1 filing that if it doesn’t get enough committed demand for 14A from big external customers and its own products, it could pause or stop work on 14A and later nodes.
Intel is in a tough spot. The stock isn’t just moving on earnings at this point. It now trades on whether interest from hyperscalers leads to actual, signed foundry deals. Intel’s outlook sees second-quarter revenue between $13.8 billion and $14.8 billion and non-GAAP EPS at $0.20. But what really matters is if Google, Nvidia or another big AI chip buyer will commit major volume to its next manufacturing nodes.
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