Intel Shares Slump 2.2% as NVIDIA Halts 18A Technology Trials

In Focus

• NVIDIA tested Intel’s 18A technology but halted the trials
• The 18A process increases chip efficiency
• Intel has started mass-producing chips using the technology in Arizona

Intel shares fell 2.2% on news that NVIDIA had paused trials to use the company’s production process to manufacture advanced chips. According to Yahoo Finance, NVIDIA had tested the 18A technology recently, but decided to halt the trials and not use it for chip production. The decision makes it harder for Intel to win customers for its foundry services.

NVIDIA’s Investment in Intel

Intel’s share price drop comes months after NVIDIA committed to a $5 billion stake in the U.S. chipmaker. The investment deal was a mix of financial transactions and a strategic plan to co-develop data center and consumer chips based on Intel’s x86 architecture.

NVIDIA agreed to do so after the U.S. government decided to take an estimated 10% stake in Intel. The investment by the tech giant, which recently became the world’s most valuable company after its market valuation hit $5 trillion, was largely seen as a major boost for Intel.

Intel has been struggling to reduce losses and catch up with competitors in the industry. However, its investment agreement with NVIDIA did not require the company to manufacture chips for the Blackwell AI chip maker.

How Intel’s 18A Technology Works

Intel’s 18A process represents the company’s push to build its best chips in-house. The technology uses two features, which the company calls industry breakthroughs. The first breakthrough utilizes transistors.

These are the tiny switches inside chips that make them work. Modern chips contain tens of billions of these switches, packed into a very tiny space. As such, efficiency depends on how well the transistors can turn on and off. Intel says its 18A chips will be the first to use a new “gate-all-around” transistor design to improve control.

This design allows chips to pack in more transistors, handle more data, and use less power. The second breakthrough involves power delivery to chips. This innovation could allow chips to include more transistors and run more efficiently.

The update on Intel’s stock drop in premarket trading comes when NVIDIA is pursuing an advanced chip design deal with Synopsys. The chipmaker’s $2 billion investment caused Synopsis stock to surge 7% on December 1, 2025.

Intel Focuses on Regaining Chip Leadership

Intel says that chip production using 18A technologies was progressing well. The U.S. chip manufacturer has recently opened a factory called Fab 52 at its Ocotillo site in Arizona.

The factory is the first to start mass-producing chips using Intel’s 18A technology, which the company says is its most advanced production technology. The company developed and deployed the technology in the U.S. ​​

By producing advanced chips locally, Intel aims to compete with global chip manufacturer, Taiwan Semiconductor Manufacturing Company (TMSC). The company also is looking to restore its U.S. leadership in chipmaking.