Intel Shares Decline After Reports Nvidia Halts Advanced Chip Production Testing

United States | EcoPulse24

Intel shares dropped in pre-market trading on Wednesday after reports surfaced that Nvidia halted a trial aimed at using Intel’s advanced 18A manufacturing technology for high-performance chip production.

According to informed sources, Nvidia had conducted tests on the 18A process but chose not to proceed to the next phase of collaboration, without disclosing detailed reasons. An Intel spokesperson stated that the 18A technology "is progressing well," reaffirming the company’s commitment to its development.

Intel's stock fell by about 2.3% in early New York trading, reflecting investor sensitivity to strategic developments in advanced chip manufacturing, especially amid fierce competition with global leader Taiwan Semiconductor Manufacturing Company (TSMC).

Intel is heavily investing in its 18A technology as part of its strategy to reshore advanced chip manufacturing to the U.S. and strengthen its position in the AI chip race. The company recently opened a new factory in Ocotillo, Arizona (Fab 52), the first to enter commercial production using this technology, which Intel describes as the most advanced developed and deployed in the U.S.

The 18A process incorporates two main innovations: the Gate-All-Around (GAA) transistor technology, enabling finer power control and higher transistor density for more efficient and powerful chips, and an enhanced power delivery method to further improve performance and efficiency.

In September, Nvidia agreed to invest $5 billion in Intel following the U.S. government’s acquisition of a nearly 10% stake in Intel, a move seen as supporting Intel’s long-term strategy. However, the agreement did not include a formal commitment to manufacture Nvidia chips at Intel.

Analysis | EcoPulse24

Intel’s share decline underscores market sensitivity to its ability to attract major AI clients for its new manufacturing technology. While Nvidia's halted test does not signal the failure of 18A, it highlights the significant challenge Intel faces in competing with TSMC and regaining its position in advanced chip supply chains, especially as global demand for AI and high-performance computing chips accelerates.