Key Points

  • Nvidia's CEO, Jensen Huang, expresses openness to collaborating with Intel in manufacturing, signaling confidence in Intel's foundry business.
  • Intel's test chip results for their next-generation process receive positive feedback from Nvidia, further validating their capabilities.
  • Nvidia emphasizes supply chain diversity and resilience, working with multiple manufacturing partners, including TSMC and Samsung.
  • Intel's Chief Financial Officer, David Zinsner, sees the foundry business as an opportunity to play a significant role in the AI revolution.
  • Intel's stock outperforms during Wednesday's trading session, rising nearly 7%, while Nvidia's stock declines amid a broader chip selloff.

Intel Corp. (INTC) has managed to stand out with a vote of confidence from one of the industry's leading players, Nvidia Corp. (NVDA). Jensen Huang, the CEO of Nvidia, expressed openness towards collaborating with Intel in manufacturing, providing an early endorsement for Intel's foundry business.

At the Computex 2023 event, Huang mentioned that Intel CEO Pat Gelsinger had previously stated that Nvidia was evaluating Intel's process. Recently, Nvidia received the test chip results of Intel's next-generation process, which Huang acknowledged as looking promising. This positive sentiment towards Intel's capabilities comes as Nvidia focuses on maintaining supply chain diversity and resilience by working with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and Samsung Electronics Co. Ltd. (005930).

Intel's Chief Financial Officer, David Zinsner, also highlighted the company's foundry business as a strategic avenue for playing a role in the artificial intelligence (AI) revolution. Zinsner emphasized Intel's strength in high-performance computing and expressed confidence in leveraging their product offerings in the foundry sector. He believes that Intel can capitalize on the AI market by providing wafers to customers with AI-focused products, positioning the company to ride the wave of AI growth.

In response to these positive developments, Intel's stock experienced a nearly 7% surge during Wednesday's trading session, marking its third consecutive day of gains. On the other hand, Nvidia's stock faced a 3.6% decline, interrupting its recent three-session winning streak. The broader chip market also experienced a downturn, with the PHLX Semiconductor Index (SOX) declining by 1.8%.

This divergence in performance indicates that Intel is defying the overall chip selloff and garnering investor confidence through its collaboration prospects and strategic focus on the foundry business. While the chip market is currently facing challenges, Intel's positive trajectory suggests that the company is positioning itself to capitalize on emerging technologies like AI.



About INTEL CORP


  • Ticker INTC
  • Exchange NASDAQ
  • Sector Technology
  • Industry Semiconductors
  • Shares Outstandng 4,105,999,872
  • Market Cap $140B
  • Description
  • Intel Corporation engages in the design, manufacture, and sale of computer products and technologies worldwide. The company operates through CCG, DCG, IOTG, Mobileye, NSG, PSG, and All Other segments. It offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and non-platform or adjacen...
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