- Intel stock rose nearly 6% on Monday on a report Nvidia and Broadcom could use the firm’s tech.
- Reuters reported that the two chip giants are running manufacturing tests at Intel’s foundry.
- The move would be an important endorsement for the embattled hardware firm.
The move: Intel rose 6% to $25.18 per share on Monday morning. The jump puts the stock on track to recoup losses after a drop of about 4.5% last week.
The chart:
Why: Sources told Reuters that Nvidia and Broadcom, two leading chipmakers, are running manufacturing tests with Intel. If successful, this could be the hardware company’s first step to unlocking lucrative manufacturing deals with two firms at the heart of the artificial intelligence trade.
Both tests utilize Intel’s 18A manufacturing process, used to develop advanced AI processors and other high-grade tech. Advanced Micro Devices is also looking into Intel’s 18A process for its own needs, Reuters added.
What it means: Rising interest from top AI chipmakers would be a strong endorsement for Intel, and could help shore up a stock that has dropped well below last year’s highs. While the stock is up about 18% year-to-date, it has fallen 43% in a year.
Layoffs and buyouts have pushed investors away from the tech giant over the past year, a retreat made worse as the company fell behind on AI. Most recently, the chipmaker announced that plans for a manufacturing plant in Ohio have been delayed until 2030 — initially, it was to start operating as soon as this year.
While the Nvidia and Broadcom tests are a needed vote of confidence, it’s not a guaranteed win for Intel. Testing can last months and may still result in disappointing conclusions. According to Reuters, that much occurred last year, with Broadcom executives let down by a batch of tests at the Intel foundry.
The latest move is also a fresh boost for the company after another bright spot in February after US Vice President JD Vance pledged to boost US chip production.