What's Going On With Intel Stock Monday?

Intel Corp INTC shares are trading higher Monday following reports suggesting NVIDIA Corp NVDA and Broadcom Inc AVGO are performing manufacturing tests with the company.

What To Know: Chip designers Nvidia and Broadcom have been doing manufacturing testing with Intel’s 18A manufacturing process, suggesting the chipmaker could be in the running for manufacturing contracts, per Reuters.

Sources familiar with the matter reportedly said the pair of tests indicate the companies are getting closer to making a decision on manufacturing. Intel has not yet announced a prominent chip designer customer, so any announcement involving Nvidia or Broadcom could be huge for Intel. Intel shares surged in early trading before pulling back. The stock was last up about 1%.

The report indicates that Advanced Micro Devices Inc AMD is also evaluating whether Intel’s manufacturing process will be the best path forward. It’s not clear if AMD has engaged in any testing with Intel to date.

“We don’t comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem,” an Intel spokesperson reportedly said.

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Intel’s 18A manufacturing process is capable of producing advanced AI processors and complex chips. Testing can take months to complete. The report indicates that it’s not clear when the tests began.

Former Intel CEO Pat Gelsinger announced his retirement in December after reportedly being forced out by the board. Intel shares are up nearly 20% year-to-date on hopes the company could lean into more aggressive strategy changes under new leadership.

INTC Price Action: Intel shares initially surged above the $25 level in early trading before pulling back. The stock was up 0.65% at $23.90 at the time of publication Monday, according to Benzinga Pro.

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