Intel shares jump on reports of Nvidia, Broadcom chip testing

(Sharecast News) - Intel's share price was surging on Monday on the back of reports that semiconductor giants Nvidia and Broadcom are testing chips on Intel's 18A manufacturing process. According to Reuters, which cited sources close to the matter, Nvidia and Broadcom are running manufacturing tests using Intel's advanced production techniques used for AI processors and other complex chips.

If tests are successful, the chip designers could commit to "hundreds of millions of dollars' worth of manufacturing contracts to iIntel", the news outlet said.

While it is unclear when the tests started, they are thought to last several months, Reuters said.

An Intel spokesperson refused to comment on specific customers but said it was seeing "strong interest and engagement on Intel 18A across our ecosystem".

Reuters' sources also said that fellow semiconductor manufacturer Advanced Micro Devices was also considering 18A for its needs.

Intel signed deals with Microsoft and Amazon.com in September last year to manufacture chips using 18A, but has yet to clinch a leading semiconductor customer.

Intel was trading around 6% higher at $25.14 in pre-market trading on Wall Street.