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Intel's Foundry Gambit Draws Fresh Interest as Reports Suggest Nvidia May Tap Its Fabs for 2028 GPUs

Investor focus is on execution through the loss-making 18A ramp to fulfill long-term Microsoft and Amazon contracts.

Overview

  • Intel topped Q4 2025 estimates but cautioned that supply constraints will be most severe in Q1, with improvement expected to begin in Q2 2026.
  • The foundry unit posted a roughly $2.5 billion operating loss tied to the early Intel 18A ramp, pressuring margins during the transition.
  • Unconfirmed reports indicate Nvidia is evaluating Intel’s foundry for 2028 “Feynman” GPUs, following a late-2025 collaboration and a $5 billion Nvidia stake in Intel.
  • Intel has secured multi‑year agreements to fabricate custom 18A chips for Microsoft and Amazon, underscoring traction with major cloud customers.
  • Analysts delivered split takes—some raising price targets on AI and 18A progress—while disclosures and shipment trends point to AMD gaining share if Intel’s supply gaps persist.