{"id":62834,"date":"2026-06-08T09:38:15","date_gmt":"2026-06-08T13:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/intel-surges-on-foundry-prospects-as-middle-east-tensions-threaten-global-oil-supply\/62834\/"},"modified":"2026-06-08T09:38:15","modified_gmt":"2026-06-08T13:38:15","slug":"intel-surges-on-foundry-prospects-as-middle-east-tensions-threaten-global-oil-supply","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/intel-surges-on-foundry-prospects-as-middle-east-tensions-threaten-global-oil-supply\/62834\/","title":{"rendered":"Intel Surges on Foundry Prospects as Middle East Tensions Threaten Global Oil Supply"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>) shares surged 10%<\/strong> following reports that Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) are considering the company as a backup chip manufacturer.<\/li>\n<li><strong>Strait of Hormuz transit remains critical<\/strong>, with only <strong>8 total transits<\/strong> recorded between June 5\u20137, prompting <strong>JPMorgan<\/strong> to warn of a potential oil crisis if the blockage persists past June.<\/li>\n<li><strong>Iran has canceled all flights<\/strong> until further notice, while Israeli Prime Minister Netanyahu reportedly instructed the army to halt preparations for an immediate attack on Iran.<\/li>\n<li><strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) has placed a massive order<\/strong> with Intel for over <strong>three million Tensor Processing Units (TPUs)<\/strong> for delivery in 2028.<\/li>\n<li><strong>U.S. consumer sentiment is shifting<\/strong> as egg prices hit a <strong>10-year low<\/strong>, while concerns regarding the labor market reached a <strong>three-year high<\/strong>.<\/li>\n<\/ul>\n<h2>Tech Giants Pivot to Intel Foundry Services<\/h2>\n<p>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>) saw its stock price jump <strong>10%<\/strong> today following a report from <em>The Information<\/em> detailing a significant shift in the semiconductor supply chain. Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) is reportedly evaluating Intel\u2019s <strong>18A process<\/strong> and advanced packaging for its future chips as it seeks to diversify its manufacturing partners.<\/p>\n<p>In a major win for Intel\u2019s foundry ambitions, Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) has reportedly placed an order for more than <strong>three million Tensor Processing Units (TPUs)<\/strong> to be manufactured by Intel in 2028. This move suggests that the world\u2019s largest tech firms are increasingly viewing Intel as a viable backup to industry leader TSMC.<\/p>\n<h2>Middle East Tensions and the Hormuz Blockage<\/h2>\n<p>Geopolitical instability in the Middle East has reached a critical juncture, with <strong>Iran canceling all flights<\/strong> until further notice. Data from Kpler indicates that the <strong>Strait of Hormuz<\/strong> is seeing historically low traffic, with only <strong>8 commercial and non-commercial transits<\/strong> monitored between June 5 and June 7.<\/p>\n<p><strong>JPMorgan<\/strong> issued a caution to investors, stating that a full-scale <strong>oil crisis<\/strong> could be imminent if the strait remains blocked past the end of June. While Pakistan Prime Minister Shehbaz Sharif urged for &quot;peace and diplomacy,&quot; reports emerged that Israeli Prime Minister Netanyahu has instructed the IDF to <strong>halt preparations<\/strong> for a retaliatory strike on Iran, offering a brief window for de-escalation.<\/p>\n<h2>Economic Shifts: Labor Worries and Food Deflation<\/h2>\n<p>The U.S. labor market is showing signs of cooling as the share of Americans who view jobs as &quot;plentiful&quot; fell to a <strong>three-year low<\/strong>. This growing anxiety comes despite some relief in the agricultural sector, where <strong>egg prices have plummeted to a 10-year low<\/strong>, providing a rare reprieve from years of food inflation.<\/p>\n<p>However, the agricultural sector faces new risks as the <strong>USDA confirmed two new cases<\/strong> of flesh-eating screwworm in Texas. This outbreak is raising significant concerns for livestock producers, as the spread of the parasite could threaten regional meat supplies and increase production costs.<\/p>\n<h2>Corporate and Market Briefs<\/h2>\n<p>Oppenheimer analysts raised their price target for Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) to <strong>$275 from $235<\/strong>, citing strong growth prospects. Meanwhile, the Italian Economy Ministry acknowledged recent movements regarding the bank <strong>Monte dei Paschi di Siena (MPS)<\/strong>, noting they recognize the inherent value of the institution.<\/p>\n<p>In international diplomacy, the U.S. has submitted a draft resolution at the <strong>IAEA<\/strong> demanding that Iran provide transparency regarding its uranium stocks and nuclear sites. <em>Market participants remain on high alert<\/em> as the intersection of semiconductor supply shifts and energy security continues to drive volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Intel (INTC) shares surged 10% following reports that Nvidia (NVDA) and Google (GOOGL) are considering the company as [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[12736,31,338,633,1947,3768,4223,5027,5032,5591],"class_list":["post-62834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-mps","tag-intc","tag-orcl","tag-nvda","tag-oil","tag-googl","tag-inflation","tag-semiconductors","tag-middle-east","tag-labor-market"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/62834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=62834"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/62834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=62834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=62834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=62834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}