By Adam Clark

Intel shares were rising early Tuesday. A newly expanded deal with Cadence Design Systems looks like a sign of confidence in Intel's next-generation chip-manufacturing process.

Intel shares were up 1.8% at $112.29 in premarket trading. That was set to add to an 11% gain the previous day amid excitement that Google and Nvidia are reportedly using Intel as a backup manufacturer for advanced processors. Intel declined to comment to Barron's.

Intel stock has risen roughly fivefold in the past 12 months, much of that based on hopes that its current 18A and future 14A manufacturing processes can attract outside chip making customers and therefore offset the billions of dollars worth of quarterly losses it is booking in its foundry, or chip-manufacturing unit.

There are growing signs Intel is confident it can attract external customers. The latest was an announcement late Monday that Intel is expanding its deal with Cadence, a company which makes software and hardware that speed up the process of designing chips. The companies said the multiyear collaboration was aimed at optimizing the 14A manufacturing process.

"Cadence wouldn't do this if there weren't [a] high probability for high performance and mobile wafer customers for Intel 14A," said Moor Insights & Strategy analyst Patrick Moorhead.

Intel was a Barron's stock pick in April when shares were trading at around $64.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 09, 2026 06:02 ET (10:02 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.