Intel Edges Higher on Report of Major AI Chip Client for 18A Process

This article first appeared on GuruFocus.

Intel (INTC, Financials) shares inched higher after reports that its foundry division won a major artificial intelligence client for its 18A manufacturing process.

Industry publication SemiAccurate said Intel Foundry has secured at least one large-volume customer, with speculation centering on Microsoft.

The company is rumored to be using Intel’s production capacity for its custom Maia AI accelerator chips for Azure cloud servers.

The potential deal aligns with Intel’s earlier announcement naming Microsoft as a key foundry partner and marks a boost for Intel’s plan to compete with Taiwan Semiconductor.

Even a single large customer could validate Intel’s next-generation process technology as it works to rebuild credibility in contract chip manufacturing.