Intel's stock surged by over 11% following Google's announcement to purchase 3 million AI chips, marking a significant recovery for the semiconductor company.
Intel Corp. experienced its largest single-day gain in more than a year, closing at $110.27. This spike follows Google's commitment to contract Intel for the production of approximately 3 million custom AI accelerators, which is one of the largest third-party foundry deals in Intel's history. Additionally, Intel has formed strategic partnerships with Foxconn to develop next-generation AI infrastructure and with Hitachi for advanced computing solutions. Despite a reported net loss of $3.73 billion in Q1 2026, analysts remain optimistic, with Wells Fargo and Barclays raising their price targets for Intel, reflecting a broader recovery narrative in the semiconductor industry.
Other semiconductor stocks also saw significant gains, with Applied Materials and Lam Research benefiting from positive equipment supercycle data. Applied Materials reported record revenue for Q2 and raised its growth forecast for semiconductor equipment, which contributed to an 8.64% increase in its stock price. Analysts responded positively, with several firms upgrading their price targets for the company, although Morgan Stanley took a cautious stance by downgrading it due to potential market corrections in the second half of the year.
This surge in Intel's stock, alongside the broader semiconductor market recovery, underscores the increasing demand for AI technology and infrastructure, positioning Intel and its partners at the forefront of this evolving landscape. As AI continues to drive innovation in the tech sector, the implications for companies involved in semiconductor manufacturing could be profound, potentially leading to sustained growth and investment in the coming years.