Intel’s AI Foundry Dream Is Becoming Reality. What That Means for INTC Stock.

Shares of Intel (INTC) jumped by more than 11% on Monday amid speculation that the company may have won one of the biggest foundry deals in its history. Alphabet's (GOOG) (GOOGL) Google is planning to use Intel's manufacturing services to produce more than three million Tensor Processing Units (TPUs). It is also reported that Nvidia (NVDA) is assessing the foundry technology of Intel for its future AI processor. No formal agreements have been made yet, though.

This comes at a time when the focus on semiconductor manufacturing capacity continues to grow. There is huge demand for accelerators and other elements of AI infrastructure, including advanced packaging, wafer fabrication, and supply chain diversification. In case Intel manages to cement its place as a manufacturer for top AI companies, then there is a good chance that its growth prospects might get considerably strengthened.