Stocks of Intel Are Rising Once Again, and This Time It's Not Because of Rumors About a Sale

Intel Corp.’s stock jumped 22% in February, fueled in part by speculation that the company might sell all or portions of its business. However, Monday’s rally came from a different source—positive developments related to Intel’s manufacturing technology.

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According to a report, Nvidia Corp. and Broadcom Inc. are currently testing Intel’s advanced 18A manufacturing process, sparking renewed optimism about the chipmaker’s future. Intel shares rose over 2% in morning trading as a result.

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A spokesperson for Nvidia declined to comment on the report, while representatives from Intel and Broadcom did not immediately respond to MarketWatch’s requests for further information.

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Although it remains uncertain whether these tests will lead to formal agreements or new business for Intel, the news comes at a critical time. Investors have expressed doubts about whether Intel’s manufacturing division can remain competitive independently. Previous reports suggested that Taiwan Semiconductor Manufacturing Co. (TSMC) might eventually acquire Intel’s fabrication facilities.

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Mizuho’s desk-based analyst Jordan Klein highlighted the potential significance of Intel’s 18A technology in a note to clients. He suggested that successful adoption of this advanced process could drive Intel’s stock price significantly higher.

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While the report does not resolve Intel’s ongoing foundry challenges, nor does it guarantee that Nvidia or Broadcom will adopt Intel’s technology, Klein emphasized that the development is a positive signal. The tests suggest that Intel’s 18A manufacturing process is viable and could position the company as a secondary supplier behind industry leader TSMC.

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This encouraging news comes amid a backdrop of operational setbacks for Intel. The company recently delayed the opening of two major fabrication plants in Ohio. Initially, Intel aimed to complete the first plant by 2025, but the timeline has now shifted significantly. The company now expects to begin operations in 2030 or 2031, with the first fab completed by 2030, according to The Wall Street Journal.

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Intel explained the delay in a Friday blog post, citing a commitment to maintaining financial discipline. “We are taking a prudent approach to ensure we complete the project in a financially responsible manner,” the company stated.

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The delay reflects ongoing challenges in the semiconductor industry, where high capital expenditures and supply chain issues have made large-scale projects difficult to execute. Despite these hurdles, Intel’s potential progress with its 18A process provides a glimmer of hope for the company’s long-term future.

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Intel’s ability to regain its competitive edge depends heavily on the success of its foundry business. In recent years, the company has struggled to keep pace with TSMC and Samsung, both of which have taken the lead in producing advanced semiconductors. Intel’s move to offer its manufacturing services to third-party clients is part of a broader strategy to revitalize its position in the market.

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If Nvidia and Broadcom decide to adopt Intel’s 18A technology, it could mark a turning point for the company’s manufacturing ambitions. While TSMC remains the dominant player, Intel’s emergence as a secondary foundry would still be a significant achievement and could generate substantial revenue in the future.

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For now, investors are balancing short-term concerns—such as the Ohio fab delays—with the long-term promise of Intel’s manufacturing technology. The company’s ability to attract major clients like Nvidia and Broadcom would signal a renewed competitive position in the semiconductor industry.

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As Intel navigates these complex dynamics, future updates on the progress of its 18A process and potential customer commitments will be closely watched. The success or failure of these initiatives will likely play a pivotal role in shaping the company’s future and determining whether it can reclaim its status as a leading chipmaker.

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