Reuters: Nvidia has stopped tests of Intel's chip release technology. Its shares fell

Intel's shares were down about 1% in trading on December 24, with the price falling almost 4% at the moment. The reason was a report by Reuters sources that the world's largest manufacturer of processors for artificial intelligence, Nvidia, had stopped testing Intel's production process to produce chips.

Intel's stock price fell to $34.95 during trading on Wednesday. It became the minimum price for almost a month - since November 25. After reaching this mark, the securities recovered some of the losses and traded at $36.

Nvidia has recently been testing Intel's 18A manufacturing process to see if it is suitable for its chips, but has not moved forward, two sources told Reuters. Nvidia did not respond to the agency's request for comment. An Intel spokesperson said the 18A process was "progressing well" and that the company "continues to see strong interest" in its next-generation 14A manufacturing process.

Intel called 18A the most innovative manufacturing technology created and applied in the U.S., Bloomberg noted.

Nvidia in September agreed to invest $5 billion in Intel in exchange for a 4% stake in the company, making it one of the U.S. chipmaker's largest shareholders. The investment by Nvidia was seen as a positive signal for Intel, which has struggled in recent years to cut losses and lagged behind rivals, Bloomberg notes.

The deal did not include Intel's obligations to produce Nvidia chips, Bloomberg recalls. But investors expected that closer cooperation between the two companies would help solve one of Intel's key problems - its weak position in the manufacturing business, Barron's writes. However, the news that Nvidia has stopped testing the 18A only emphasizes this weakness, which has long affected Intel's share price, and is far from a sign of confidence in Intel's technology, the publication says.

Intel's stock is up 79% in 2025 despite business challenges - thanks in large part to Nvidia's investment and the U.S. government's acquisition of a 10% stake.

Most analysts advise holding Intel securities: they have 34 Hold ratings out of 47 total, MarketWatch shows. Another five analysts recommend buying the stock, while eight think it's worth selling. The average target price of $38.48 is 5.9% above the last closing level.

This article was AI-translated and verified by a human editor