This article first appeared on GuruFocus.
Shares of Intel (NASDAQ: INTC ) fell about 2% in early trading Wednesday after reports that Nvidia (NASDAQ: NVDA ) chose not to use Intel’s 18A manufacturing process.
The two companies had tested the process earlier this year, but Nvidia reportedly decided not to move forward. Broadcom (NASDAQ: AVGO ) is participating in a similar trial.
Intel’s 18A technology is part of its efforts to attract outside chipmakers as customers, but early evaluations face technical challenges that could affect demand.
Nvidia’s stock price has remained largely stable, indicating little direct impact on its production plans.
The company continues to rely heavily on Taiwan Semiconductor Manufacturing Company (TSM) for advanced chip manufacturing.
For Intel, the decision highlights the competitive hurdles in winning high-profile foundry customers while trying to expand its advanced manufacturing capabilities.
