Intel Shares Fall After Report Nvidia Halted Chip Process Testing
The development is a perceived setback for Intel's ambitious plan to build a foundry business to compete with industry leader TSMC.
Intel Corp. (INTC) shares declined Tuesday following a report that Nvidia (NVDA), a crucial potential customer, had halted its evaluation of Intel’s next-generation 18A manufacturing process.
The news dealt a blow to the chipmaker's extensive and costly turnaround plan, which hinges on the success of its foundry business—manufacturing chips for other companies. Intel's stock fell as much as 5% in pre-market trading after the news broke and closed the day down slightly at $36.35.
The report raises concerns about the viability of Intel Foundry Services and its ability to attract major "fabless" chip designers like Nvidia, which currently relies heavily on Taiwan Semiconductor Manufacturing Co. (TSMC) for its world-leading AI graphics processing units (GPUs). Securing a commitment from Nvidia would have served as a powerful endorsement of Intel's technology and a significant challenge to TSMC's market dominance.
Intel has staked its future on a multi-year strategy, championed by CEO Pat Gelsinger, to regain its manufacturing edge and open its factories to external clients. The 18A process, which features new transistor (RibbonFET) and power delivery (PowerVia) technologies, is the cornerstone of this effort. The company has aimed for the process to be ready for mass production by late 2025, with internal products like its Clearwater Forest server chips already slated to use it.
Despite the report, an Intel spokesperson maintained that its technology roadmap is on schedule. "Our 18A process is progressing well and continues to attract interest from potential customers," the company stated, as reported by multiple outlets.
This development underscores the immense challenge Intel faces in the highly competitive foundry market. TSMC held a dominant revenue share of over 70% in the global foundry market in mid-2025, and winning high-volume, leading-edge customers is a monumental task. While Intel has reportedly secured a major deal with Microsoft for its 18A technology, losing a customer of Nvidia's scale and influence in the AI space would be a significant setback.
Wall Street remains cautious about Intel's ambitious turnaround. The company's stock trades well below its 52-week high of $44.02, and of the 45 analysts covering the stock, 34 rate it a 'Hold'. This reflects uncertainty about the company's ability to execute its complex manufacturing and business model transition while navigating fierce competition from both TSMC and Samsung Foundry.
For Intel, the path to becoming a major player in the foundry business is a long-term endeavor requiring flawless technological execution and the trust of the world's most demanding chip designers. While the company insists its 18A process is on track, the market's reaction to the Nvidia news signals that any perceived stumble on this journey will be heavily scrutinized.