Investing.com -- Intel Corporation (NASDAQ: INTC) rose 1% Thursday, extending a rally that has seen shares surge 33% over the past five days as the chipmaker emerges as a focal point in the AI infrastructure buildout.

The stock climbed following Intel’s announcement of a multiyear collaboration with Google to advance AI and cloud infrastructure. The partnership centers on Intel Xeon processors and custom infrastructure processing units (IPUs) designed to improve efficiency and performance across Google’s global operations.

Under the agreement, Google Cloud will continue deploying Intel Xeon processors across its workload-optimized instances, including the latest Intel Xeon 6 processors powering C4 and N4 instances. The platforms support workloads ranging from large-scale AI training coordination to latency-sensitive inference and general-purpose computing.

Intel and Google are also expanding co-development of custom ASIC-based IPUs. These programmable accelerators offload networking, storage and security functions from host CPUs, improving utilization and enabling more predictable performance across hyperscale AI environments.

"AI is reshaping how infrastructure is built and scaled," said Lip-Bu Tan, CEO of Intel. "Scaling AI requires more than accelerators - it requires balanced systems. CPUs and IPUs are central to delivering the performance, efficiency and flexibility modern AI workloads demand."

Amin Vahdat, SVP & Chief Technologist, AI Infrastructure at Google, said Intel has been a trusted partner for nearly two decades, and their Xeon roadmap gives confidence to meet growing performance and efficiency demands.

The rally gained momentum earlier this week after Intel joined the Terafab project alongside SpaceX, xAI, and Tesla for chip production. The stock rose following news that Intel hosted Elon Musk over the weekend and confirmed participation in the collaborative initiative.

Lynx Equity analyst KC Rajkumar recently noted that Intel has made progress addressing client wafer supply issues that contributed to below-seasonal first quarter guidance provided three months ago.