Intel Stock Could Soar If This Nvidia Rumor Is True
One of the key priorities for new Intel (NASDAQ: INTC) CEO Lip-Bu Tan is to turn the company's foundry business into a success. The Intel 18A process node, which features multiple technological innovations and should challenge market leader TSMC in terms of performance and efficiency, is ready for production. The challenge now is to scale up and fill that capacity with new customer orders.According to UBS analyst Timothy Arcuri, Intel is closing in on scoring Nvidia (NASDAQ: NVDA) as a foundry customer. While Intel has both Microsoft and Amazon on board as Intel 18A customers, winning over the largest fabless chip designer by revenue would be an enormous vote of confidence in Intel's foundry business.There are two compelling reasons why Nvidia may be keen on shifting some production from TSMC to Intel. First, the company is struggling to provide enough gaming GPUs to meet demand. Nvidia recently launched its RTX 50 series graphics cards, but supply has been extremely tight, leading to prices well above MSRP.Continue reading
One of the key priorities for new Intel (NASDAQ: INTC) CEO Lip-Bu Tan is to turn the company's foundry business into a success. The Intel 18A process node, which features multiple technological innovations and should challenge market leader TSMC in terms of performance and efficiency, is ready for production. The challenge now is to scale up and fill that capacity with new customer orders.
According to UBS analyst Timothy Arcuri, Intel is closing in on scoring Nvidia (NASDAQ: NVDA) as a foundry customer. While Intel has both Microsoft and Amazon on board as Intel 18A customers, winning over the largest fabless chip designer by revenue would be an enormous vote of confidence in Intel's foundry business.
There are two compelling reasons why Nvidia may be keen on shifting some production from TSMC to Intel. First, the company is struggling to provide enough gaming GPUs to meet demand. Nvidia recently launched its RTX 50 series graphics cards, but supply has been extremely tight, leading to prices well above MSRP.
