• Alphabet's Google has ordered more than 3 million tensor processing units from Intel for production in 2028.
• This is Intel Foundry's largest external manufacturing win so far, focused on advanced AI chips.
• Nvidia is running early trials on Intel's 18A process and reviewing Intel for future GPU and processor manufacturing.
• The two deals point to broader industry interest in diversifying chip manufacturing beyond TSMC.

Intel, traded as NasdaqGS:INTC, is drawing fresh attention as a potential manufacturing partner for some of the biggest AI chip buyers. The stock closed at $107.04, with a very large 1 year return and a 171.8% gain year to date, even though it is down 5% over the past week and 17.3% over the past month. These moves frame a company that is already in focus as investors weigh what new foundry wins could mean over time.

For readers tracking the AI supply chain, Google's order and Nvidia's 18A trials highlight how Intel is inserting itself into conversations previously dominated by other foundries. The scale and timing of these commitments give you concrete data points to watch as you assess how Intel's foundry ambitions may influence its role in future AI hardware manufacturing.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Quick Assessment

• ❌ Price vs Analyst Target: At US$107.04, the stock is about 16% above the US$92.17 analyst price target range midpoint.
• ❌ Simply Wall St Valuation: Shares are trading 88.4% above the platform's estimated fair value, flagging a rich valuation.
• ❌ Recent Momentum: The stock has fallen 17.3% over the last 30 days, so near term sentiment has cooled.

There's only one way to know the right time to buy, sell or hold Intel. Head to Simply Wall St's company report for the latest analysis of Intel's Fair Value.

Key Considerations

• 📊 Google and Nvidia using Intel's foundry services reinforces the idea that large AI customers are willing to diversify suppliers. This supports the foundry thesis.
• 📊 Watch for updates on 18A capacity, long term foundry contracts, and how much of future revenue is tied to external manufacturing rather than internal chips.
• ⚠️ With three flagged minor risks including recent dilution and share price volatility, execution setbacks on these deals could have an outsized share price impact.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Intel analysis. Alternatively, you can check out the community page for Intel to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.