Intel Stock Jumps on Report Google Signs as Foundry Customer

Intel (INTC) shares surged in trading on Monday after a news report indicated that Alphabet's Google (GOOGL) has signed on as a customer for Intel's chip foundry. The development comes as Intel seeks to bolster its contract manufacturing business.

Details of the Report

According to a report from Investor's Business Daily, citing sources, Google will use Intel's foundry to manufacture some of its chips. The value of the deal and expected production volume were not disclosed. Both Intel and Google declined to comment on the report.

Context

The news comes as Intel pushes to transform its business toward contract manufacturing under CEO Pat Gelsinger. Intel aims to compete with TSMC and Samsung in the fast-growing foundry market. For Google, partnering with Intel could reduce its reliance on Asian chip suppliers.

Market Reaction

Intel shares rose more than 5% in pre-market trading following the report. Alphabet shares also edged higher. No official statement has been issued by either company.

What It Means for Investors

If confirmed, the deal would be a positive step for Intel's foundry strategy and could pave the way for other major customers. However, uncertainty remains until an official announcement, and investors should monitor developments cautiously.