Intel's stock is set to extend its hot streak. Here's the company's latest win.

By Britney Nguyen

Google and Intel are collaborating on CPUs and custom infrastructure chips to scale AI

Intel announced an expanded collaboration with Google on Thursday.

Intel's stock is soaring for the seventh consecutive session, on the heels of the chip company's latest high-profile partnership.

The company announced Thursday morning that it would be partnering with Google (GOOGL) on the next generations of its chips for artificial-intelligence data centers.

The two companies have embarked on a multiyear collaboration through which Intel (INTC) will provide "multiple generations" of its Xeon data-center central processing units. This marks an extension of an existing CPU relationship between the two companies.

Intel's stock was up about 3% in Thursday morning trading and on track to rise for the seventh session in a row. That would make for the stock's longest winning streak since Sept. 7, 2023, when it rose for nine sessions straight, according to Dow Jones Market Data.

Shares are up 47.5% over the current seven-session period, which would make for their largest seven-day gain on record if the current momentum holds through the close.

The stock closed at nearly a five-year high on Wednesday.

Intel and Google are also expanding their partnership for the co-development of custom infrastructure processing units, or IPUs, which are designed to offload networking, storage and security tasks from the CPU. The chips are programmable, Intel said, and help with efficiency "and enabling more predictable performance" in hyperscaler AI data centers.

"Scaling AI requires more than accelerators - it requires balanced systems," Intel CEO Lip-Bu Tan said in a statement. "CPUs and IPUs are central to delivering the performance, efficiency and flexibility modern AI workloads demand."

See more: Intel's stock pops as its latest move signals a 'turnaround' is afoot

Intel's server CPUs have become crucial in AI data centers due to the rise of agentic AI and as the industry shifts to inference - the process of running AI models after training. Demand for server CPUs is outstripping supply, and some analysts on Wall Street have pointed out that shortages could become another bottleneck to AI development.

Earlier this month, the company said it was paying $14.2 billion to repurchase the 49% equity interest in a joint venture related to its chip fab in Ireland that was acquired by Apollo Global Management in 2024. The company said the move reflected "continued business momentum" with its CPUs.

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-Britney Nguyen

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04-09-26 1017ET