Intel $INTC ( ▼ 1.39% ) shares fell early on Christmas Eve after a Reuters report said Nvidia $NVDA ( ▼ 0.91% ) recently tested Intel’s 18A manufacturing process but decided not to move forward, citing people familiar with the matter. The news hit sentiment quickly, raising fresh doubts about Intel’s foundry ambitions just as it tries to reestablish itself as a serious alternative to Taiwan Semiconductor Manufacturing.
A setback for Intel’s foundry hopes
According to Reuters, Nvidia explored whether Intel’s 18A process could be used to manufacture its chips, then halted further testing. Intel pushed back, saying the 18A node is “progressing well” and that it continues to see strong customer interest, while also pointing to its newer 14A process as a key focus going forward. Earlier reports suggested Intel CEO Lip-Bu Tan had already considered deprioritizing 18A in favor of 14A to better compete with TSMC.
Why Nvidia matters here
Nvidia carries outsized symbolic weight in the chip world. Winning even a portion of Nvidia’s manufacturing work would be a major validation of Intel’s foundry turnaround. Losing momentum with Nvidia instead reinforces investor skepticism about whether Intel can close the gap with leading-edge competitors.
Context investors should remember: Just a few months ago, Intel shares surged after Nvidia announced a $5 billion investment tied to a collaboration on future data center and PC products. That deal sparked optimism that Intel’s manufacturing strategy was gaining traction. Today’s report does not unwind that partnership, but it does underscore how fragile confidence remains as Intel works to prove its processes can meet the demands of the world’s most advanced chip designers.