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Intel (NASDAQ:INTC) is making waves after reports surfaced that Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) are running tests on its 18A manufacturing process. If these tests turn into actual contracts, it would be a massive win for Intel's struggling foundry business. But it's not a done deal yet. The company has faced repeated delays, and past testing setbackslike Broadcom's previous disappointmentraise doubts about whether Intel can deliver at scale. Meanwhile, Taiwan Semiconductor Manufacturing (NYSE:TSM) is reportedly in talks to take a stake in Intel's chip factories, hinting at more shakeups in the semiconductor race.
Intel has been pushing hard to position its 18A process as a real competitor to Taiwan Semiconductor's cutting-edge tech. But with its foundry business losing $13.4 billion last year, it needs more than just interest from Nvidia and Broadcomit needs committed customers. Even if deals materialize, Intel still faces roadblocks. Many smaller chipmakers won't be able to produce on 18A until at least mid-2026 due to intellectual property issues, and Intel itself has already delayed key timelines. The big question now is whether these tests mark the start of a real turnaroundor just another hype cycle.
For investors, the stakes are high. If Intel lands Nvidia and Broadcom as long-term clients, it could breathe new life into its foundry ambitions and shift the power dynamic in the industry. But there's no guarantee. Chipmakers routinely explore multiple suppliers, and manufacturing tests don't always lead to production deals. Analysts remain splitsome see Intel as a turnaround play, while others think its structural challenges run too deep. Either way, the next few months will be critical in deciding whether Intel is on the verge of a comeback or still fighting an uphill battle.
This article first appeared on GuruFocus.