Intel’s Stock On The Rise, Nvidia and Broadcom Test Chip-Production Methods

Intel ‘s stock price (NASDAQ: INTC) is up more than 3.5% today following a report that suggests Nvidia (NVDA) and Broadcom (AVGO) are exploring Intel's chip-production methods. This development indicates a potential shift in the chip manufacturing landscape, highlighting the interest of major industry players in Intel's technology.

With all the Magnificent 7 stocks in the red year-to-date, Intel's sentiment has shifted, with a gain of 21.5% on the year a marked turnaround after a difficult last year. The MAGS ETF has lost 6.4% year-to-date to stand in stark contrast, albeit against differing pictures when zooming out.

Nvidia and Broadcom are reportedly considering partnering with Intel for manufacturing a significant number of their chips. Both companies are testing Intel's advanced 18A chip-making techniques, which are believed to be pivotal for their future production needs. Furthermore, the two companies are evaluating the possibility of entering into long-term manufacturing deals with Intel, which could potentially be worth “hundreds of millions of dollars.”

The interest in Intel's production capabilities is not limited to Nvidia and Broadcom. AMD is also reportedly testing Intel's methods, although it appears to be at an earlier stage compared to its competitors. Nvidia's CEO, Jensen Huang, has publicly acknowledged the successful outcomes of Intel's production methodologies, having received positive results in 2023.

In addition to these developments, Intel already has manufacturing agreements in place with tech giants such as Amazon (AMZN) and Microsoft (MSFT). Meanwhile, Broadcom is also showing interest in acquiring Intel's chip design and marketing units, which could further enhance its capabilities in the semiconductor sector. Moreover, there are indications that Taiwan Semiconductor (TSM) is contemplating acquiring a controlling stake in Intel's chip-making business.

These developments mark a significant moment for Intel, as collaborations with Nvidia, Broadcom, and potentially other major companies could solidify its position in the semiconductor industry. As these talks progress, the potential for lucrative deals and strategic partnerships could have a substantial impact on Intel's market performance and technological advancements.