Nvidia and Broadcom testing chips on Intel manufacturing process, sources say
Published On Mar 3, 2025, 6:04 AM
Nvidia and Broadcom have begun testing chips using Intel's advanced 18A manufacturing process, indicating a potential future partnership worth hundreds of millions of dollars in manufacturing contracts. This testing reflects their confidence in Intel's capabilities despite previous setbacks and delays faced by the company. Notably, AMD is also considering Intel's manufacturing option but has not yet committed. Intel's foundry business is crucial for its recovery strategy, and successful adoption of this process could revitalize its revenue streams that have been struggling. However, Intel has faced delays in ramping up its 18A process, pushed further back from earlier timelines due to unresolved intellectual property qualifications. Investors are watching closely how these developments affect Intel's standing in a competitive market dominated by TSMC.
Stock Forecasts
INTC
Positive
The partnership testing with Nvidia and Broadcom suggests growing interest in Intel’s manufacturing capabilities, which could lead to increased revenue and improve investor confidence in Intel. Despite ongoing delays, if successful, this could bolster Intel's market position against competitors.
NVDA
Positive
Nvidia's involvement may drive further investment interest in the AI sector, particularly in stocks that leverage innovative manufacturing technologies. A successful rollout of new chips can enhance Nvidia’s product portfolio and growth prospects.
AVGO
Positive
Broadcom, as it explores manufacturing through Intel, could position itself better in the semiconductor supply chain. Positive results from the testing phase could lead to significant contract deals, enhancing Broadcom's growth trajectory.
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