Intel shares slide after report says Nvidia paused testing of 18A chip process

Intel’s INTC stock plunged by 2.5% on Wednesday after Reuters alleged that Nvidia had paused testing of the 18A chip manufacturing process, the most advanced production node Intel is trying to bring to market.

Reportedly, Nvidia had tested the 18A process and chose not to move forward, dealing a smack at Intel during a very sensitive moment as it continues trying so hard to prove it can manufacture leading-edge chips inside the United States while rebuilding credibility after years of lost ground.

An Intel spokesperson allegedly responded to the Reuters report and said the company’s 18A manufacturing technologies are “progressing well.”

The development followed the recent opening of Fab 52 at Intel’s Ocotillo site in Arizona. The facility is the first Intel factory to enter mass production using the 18A technique. The company has said the technology represents the most advanced production process ever developed and deployed in the United States.

Intel’s domestic manufacturing push is meant to challenge Taiwan Semiconductor Manufacturing Co., the global leader in contract chip production. The effort also aims to restore US leadership in advanced semiconductor manufacturing after years of reliance on overseas facilities.

In September, Nvidia agreed to invest $5 billion into Intel after the US government decided to take roughly a 10% stake in the chipmaker. The investment drew attention because Nvidia is the world’s most valuable chip company and a key supplier to the artificial intelligence boom. The deal did not include any commitment for Intel to manufacture Nvidia chips, a detail that remains unchanged after the halted test.

Intel’s 18A technology underpins Panther Lake as losses continue

In October, Intel introduced two major changes to chip construction, with the first one focusing on transistors, the tiny switches that power modern processors. This is reportedly because typically, chips have tens of billions of transistors packed into small spaces, meaning convenient on and off control is critical for performance and power use.

Intel has long said that chips made with 18A will be the first to use gate-all-around transistor technology, which allows tighter control over electrical flow. The approach supports higher transistor density, stronger data handling, and lower energy consumption.

The second change involves how power is delivered across the chip, with the goal of allowing more transistors without sacrificing efficiency.

In October, Intel said its Panther Lake processors had entered full production and are scheduled to go on sale in laptops early next year, all built using the 18A process that the company vows improves on earlier generations and better balances heavy workloads like AI software with battery life.

Sadly, though, despite all that, Intel remains in its second straight year of losses, and analysts do not expect a return to profitability before 2027, as Cryptopolitan previously reported during Q3 earnings season.

Revenue has fallen as Intel lost market share and failed to benefit from the surge in data center demand tied to artificial intelligence. Nvidia moved faster in that market and now dominates it.

At the same time, Intel is carrying the heavy cost of factory upgrades. Fab 52 alone required more steel than the Eiffel Tower and houses machines that cost hundreds of millions of dollars each.

The smartest crypto minds already read our newsletter. Want in? Join them.