Nvidia Corp. recently stopped testing whether it would manufacture its advanced artificial intelligence chips using Intel Corp.’s 18A production process, according to people familiar with the matter. The halt in testing, reported by Reuters, comes as Intel tries to establish its next-generation manufacturing business as a credible alternative to contract chipmaking giant Taiwan Semiconductor Manufacturing Company. The move is described as a setback for Intel’s effort to secure major external customers for its 18A node and to challenge the $1.5 trillion contract chipmaker Taiwan Semiconductor Manufacturing Company.
The pause arrives despite a high-profile collaboration between the two companies. Earlier this year, Nvidia’s $5 billion investment in Intel was announced as part of a broad partnership to jointly develop several generations of custom data center and PC products, with the goal of speeding up artificial intelligence and computing workloads across cloud, enterprise, and consumer markets. The news of that investment and partnership had previously sent Intel shares up more than 29%, aided by recent U.S. government support. At the time of the partnership announcement, Intel CEO Lip-Bu Tan and Nvidia CEO Jensen Huang both emphasized that the companies were prioritizing collaboration on products rather than entering into specific manufacturing agreements.
In response to concerns around the paused testing, Intel has said its 18A manufacturing technology is progressing well and continues to draw interest from prospective customers. The company has also highlighted its upcoming 14A process, which it says will enable more powerful and energy-efficient chips. Intel stock gained over 81% year-to-date, supported by Trump administration investments, the Nvidia partnership, and reports that Apple Inc. is potentially considering Intel for future M-series chips. However, Intel shares were down 3.27% at $35.16 during premarket trading on Wednesday after the testing report, according to Benzinga Pro data. Meanwhile, Nvidia became the first company to top the $4.5 trillion market cap in October 2025, surpassing Apple, Alphabet Inc, and Microsoft Corp. Benzinga reported that it reached out to Intel and Nvidia investor relations for their response and is awaiting comment.
