Intel shares dropped over 3% in pre-market trading on December 24, 2025. The decline followed reports that Nvidia ceased testing Intel’s advanced 18A chip manufacturing process. Nvidia had been evaluating the 18A technology for producing its own chips but decided not to proceed after initial evaluations.
This decision immediately raises concerns about the technical viability of the 18A process. The 18A node is central to Intel's long-term strategy to become a major foundry and compete directly with industry leader TSMC.
The news surfaces only months after Intel and Nvidia announced a significant partnership. That agreement included a planned $5 billion investment by Nvidia in Intel stock. An Intel spokesperson commented that their 18A manufacturing technologies are "progressing well," but offered no specific details regarding Nvidia’s decision to halt testing.