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Key Takeaways
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Intel shares were up Monday after a report said Nvidia and Broadcom are running tests of its chip manufacturing process.
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Successful tests could mean chip manufacturing contracts for Intel worth hundreds of millions, the report said.
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Intel's foundry has struggled, losing $13.4 billion last year and reportedly failing a previous round of Broadcom tests.
Shares of Intel (INTC) rose Monday following a Reuters report—citing sources familiar with the matter—that chip designers Nvidia (NVDA) and Broadcom (AVGO) are running tests of Intel’s manufacturing process, putting the company potentially in-line for major semiconductor contracts.
If the tests are considered successful, it could mean hundreds of millions of dollars in contracts for Intel’s struggling chipbuilding arm, or foundry, the report said. The foundry lost $13.4 billion in 2024 and has struggled to keep up with rival Taiwan Semiconductor Manufacturing (TSM).
In order to run tests, chip designers will sometimes purchase silicon wafers, which chips are printed on, the report said. The wafers are used to test specific chip components, in this case using Intel’s 18A process, before a contract is signed, according to the report. In September, previous tests of the 18A process conducted by Broadcom reportedly failed.
Reuters reported that Advanced Micro Devices (AMD) is also evaluating the 18A process but the news organization said it was "unclear" whether the company has conducted similar tests.
Nvidia declined to comment. Intel, Broadcom, and AMD each did not immediately respond to requests for comment.
The report comes just days after Intel delayed the opening of two manufacturing plants in Ohio by four years to 2030. The company’s chief global operation officer said the move was done to, “align the start of production of our fabs with the needs of our business and broader market demand.”
Intel’s Foundry Draws Reported Acquisition Attention
Intel’s foundry has been in the spotlight as a potential beneficiary of the Trump administration’s stated goal of ensuring artificial intelligence chips are designed and manufactured domestically. It’s also been the subject of acquisition speculation, including by TSMC.
Shares of Intel rallied more than 3% intraday Monday and are up more than 22% since the beginning of 2025. However, the stock is worth about half of what it was a year ago.
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