Nvidia Corp and Broadcom Inc slumped on Monday after reports emerged the due were conducting manufacturing tests using Intel Corp’s advanced 18A process.
Reported by Reuters, the move could pave the way for larger manufacturing contracts after Intel has so far failed to secure a major third-party chip design customer.
Advanced Micro Devices Inc (AMD) is also said to have been evaluating Intel’s process, which is designed for making advanced artificial intelligence processors and other complex chips.
AMD’s level of involvement remains unclear though, with Intel competing against similar technology from market leader Taiwan Semiconductor Manufacturing Co (TSMC).
Intel has also faced delays, prompting warnings that further setbacks could deter major clients.
The tests are not full production runs but rather an assessment of Intel's technology for AI and other high-performance chips.
Despite ongoing concerns, Nvidia and Broadcom’s engagement suggests a willingness to explore alternative foundry options beyond TSMC and Samsung.
Nvidia dropped 4.7% to $119.08 on Monday, as Broadcom fell 2.4% to $194.72.
Intel climbed 3.3% to $24.51 in the meantime.