What's Going On With Intel Stock Monday?

Intel Corp (NASDAQ: INTC) shares have shown an upward trend on Monday as reports reveal that NVIDIA Corp (NASDAQ: NVDA) and Broadcom Inc (NASDAQ: AVGO) are engaging in manufacturing tests using Intel’s 18A manufacturing process.

Key Insights: Both Nvidia and Broadcom are reportedly testing Intel's 18A manufacturing technology, indicating that Intel may be in line for potential manufacturing contracts. This information comes from sources cited by Reuters.

Information from insiders suggests that these tests bring the companies nearer to making crucial decisions regarding their manufacturing partnerships. As of now, Intel has yet to confirm a major chip designer customer; hence, any announcement involving either Nvidia or Broadcom would represent a significant milestone for Intel. Although Intel shares initially experienced a surge at the start of trading, the increase settled, and the stock was reported to be approximately 1% higher.

Furthermore, it's been suggested that Advanced Micro Devices Inc (NASDAQ: AMD) is also assessing whether adopting Intel’s manufacturing process would be advantageous for them. However, it remains unclear whether AMD has begun testing with Intel thus far.

An Intel representative commented, “We don’t comment on specific customers, but we continue to see strong interest and engagement with Intel 18A throughout our ecosystem.”

Importance of 18A Process: Intel’s 18A manufacturing technique is designed for the production of high-performance AI processors and intricate chips. Testing these processes can be extensive, often taking several months to complete, and the exact start dates of the tests have not been disclosed.

The company's former CEO, Pat Gelsinger, announced his retirement in December after having reportedly been pushed out by the board. Since then, Intel’s stock has risen nearly 20% in 2023, fueled by optimism surrounding more aggressive strategic changes expected under new leadership.

Current Stock Movement: In early trading, Intel’s shares rose above the $25 mark but later retracted. The stock was noted to be up about 0.65% at $23.90 at the time of writing.

Photo: Shutterstock.

Intel, Stock, Manufacturing