Intel surges on report of 3 million Google TPU order; Nvidia also interested

Intel is reportedly set to receive a significant boost with a massive order from Google for over 3 million Tensor Processing Units (TPUs). This news, reported by The Information, has already sent Intel's stock price soaring by more than 13% in pre-market trading.

The substantial order from Alphabet's Google could mark a critical step in Intel's efforts to regain its footing in the competitive chip manufacturing industry. For years, Intel has been trailing behind rivals like TSMC due to management missteps. However, this potential deal with Google signals a renewed confidence in Intel's manufacturing capabilities.

While Nvidia has not yet placed an order, the report indicates that the company is evaluating Intel's technology for its own processor manufacturing needs. This suggests a broader potential for Intel's advanced manufacturing processes to be adopted by major tech players.

This development follows Tesla CEO Elon Musk's earlier announcement in April that the electric vehicle maker plans to use Intel's next-generation 14A manufacturing process for its advanced artificial intelligence chips at its Terafab project in Austin. These combined potential deals suggest a significant shift in the semiconductor landscape, with Intel potentially reclaiming a more dominant position.