Securing Million-Chip Order From Google. Intel Rises More Than 10%, TSMC Capacity Crunch Becomes Turning Point

Tradingkey - June 8, Google ( GOOGL) has officially placed an order with Intel for millions of AI chips (TPUs). Buoyed by the positive news, Intel ( INTC) shares opened at $111; as of press time, the stock remains up 10.71% at $109.79.

On the news front, as TSMC ( TSM )'s capacity fails to meet market demand, Intel is securing orders from companies like Google.

Media reports indicate that Google has confirmed it will commission Intel to manufacture more than 3 million of its proprietary TPU chips in 2028. The TPU is Google's self-developed AI chip used for training and running AI models. Currently, Google has begun selling TPU computing power to companies like Apple and Meta Platforms.

Meanwhile, NVIDIA ( NVDA) is also testing Intel's 18A process to evaluate whether it can be used to produce next-generation 4-GPU integrated processors. This involves testing whether Intel's technology can be used to produce a new type of processor that integrates four graphics chips into a single package.