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March 3 - The shares of Intel (INTC, Financial) surged more than 6% ahead of the opening bell on Monday because technology industry leaders Nvidia (NVDA, Financial) and Broadcom (AVGO, Financial) have started testing Intel's 18A process manufacturing capabilities, according to Reuters reporting. Technical evaluations of Intel's 18A process with two industry sources indicate a future expansion of major production orders to potentially bring vital revenue to Intel's foundry business, which has been struggling.
Manufacturers view these tests as an initial demonstration of faith in Intel's next-generation production technologies among competing companies in the market. The tests are currently in progress, but Intel has not received any definitive long-term agreements. AMD performs assessment tests on Intel's 18A process, but the status of testing through Intel's facilities remains unknown.
Numerous tests indicate promising results but Reuters reports that the company still needs to finalize the decisions about outcomes and contractual elements. The situation continues to evolve; thus, new updates will become available according to a Monday filing. At present, investors, as well as industrial analysts demonstrate a restrained yet optimistic approach toward upcoming developments.
This article first appeared on GuruFocus.