Intel Shares Slide After Report Says Nvidia Pauses Production Test

Intel Corp. shares declined on Wednesday after a report indicated that Nvidia Corp. had paused a test involving Intel’s chip manufacturing technology, a development that drew renewed attention to Intel’s efforts to reestablish itself as a leading producer of advanced semiconductors. The news landed during a relatively calm trading session, but it was enough to weigh on sentiment toward the stock, which has been closely watched amid Intel’s push to expand its foundry business.

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According to a Reuters report, Nvidia had recently evaluated Intel’s so-called 18A production process, one of the company’s most advanced manufacturing technologies. However, the test did not move forward, and Nvidia ultimately halted further work using the process. Reuters cited two people familiar with the matter, who spoke on condition of anonymity, and no additional details were provided regarding the specific reasons behind the decision.

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The report was seen by investors as a setback for Intel at a time when the company is attempting to regain credibility in cutting-edge chip manufacturing. Intel has been working to position itself as a contract chipmaker capable of producing advanced processors for external customers, a strategy aimed at competing more directly with industry leaders that currently dominate the global foundry market. Interest from a major chip designer like Nvidia has been viewed as an important signal of progress, making the halt particularly notable.

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Intel’s 18A process is a key part of the company’s roadmap and represents a significant technological milestone in its broader turnaround strategy. The company has emphasized that success in advanced manufacturing is critical not only for its own products but also for attracting high-profile customers. As a result, any indication that potential partners are hesitant to proceed tends to attract close scrutiny from the market.

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For Nvidia, the decision to pause the test does not necessarily signal a broader shift in strategy, but it underscores the company’s rigorous standards when evaluating manufacturing technologies.

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Nvidia relies heavily on access to the most advanced and reliable production processes to support its high-performance chips, which are in strong demand across data centers, artificial intelligence applications, and other computing workloads. Testing alternative manufacturing options is a normal part of the process, though not all evaluations result in long-term commitments.

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From an investor perspective, the episode highlights the competitive nature of the semiconductor manufacturing landscape. Chipmakers and foundries are under constant pressure to deliver improvements in performance, efficiency, and production reliability, with even small gaps potentially influencing customer decisions. Intel’s ambition to play a larger role in this space remains intact, but the latest report serves as a reminder that execution risks remain.

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Despite the market reaction, Intel has previously stressed that customer evaluations and testing phases can be lengthy and iterative. Not every trial advances to the next stage, and decisions can be influenced by a range of technical, timing, and strategic considerations. Still, with investors closely tracking progress in Intel’s foundry business, developments involving high-profile companies like Nvidia tend to carry outsized weight.

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As Intel continues to invest heavily in manufacturing capacity and process technology, market participants will be watching for signs that its efforts are translating into firm customer commitments. The ability to attract and retain external clients is central to the company’s long-term strategy and a key factor shaping expectations around its future growth.

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For now, the Reuters report adds a note of caution to the narrative, even as Intel presses ahead with its broader transformation. With demand for advanced chips continuing to grow and competition intensifying, the company’s progress and setbacks in manufacturing innovation are likely to remain a focal point for investors in the months ahead.