Intel stock bucks chip selloff as company receives a vote of confidence from Nvidia
By Emily Bary
Nvidia CEO Jensen Huang says his company is 'open to manufacturing with Intel'
As Intel Corp. (INTC) builds out its foundry business, it may have gotten an early vote of confidence from the hottest chip company of the moment.
"Pat has said in the past that we're evaluating their process and we've recently received the test chip results of their next-generation process and results look good," Nvidia Corp. (NVDA) Chief Executive Jensen Huang said at the Computex 2023 event, according to an article from Digitimes. He was referring to Intel CEO Pat Gelsinger.
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Huang made his recent comments while noting that his company's supply chain is "designed for maximum diversity and redundancy so that we can have resilience," as Nvidia works with Taiwan Semiconductor Manufacturing Co. Ltd. (2330.TW) as well as Samsung Electronics Co. Ltd.
Meanwhile, Intel Chief Financial Officer David Zinsner called out the company's foundry business as a way Intel can play the artificial-intelligence revolution.
"We are very good on the high-performance compute side," he said at a TD Cowen conference Wednesday. "That's where we think we can leverage the best of our product offerings in foundry."
For that reason, he thinks Intel "will be able to ride the wave of AI, not only on the product side, but also on the foundry side by providing wafers to those customers that have products that address the AI market."
See more: Intel exec says the AI rush isn't denting its business, and instead brings 'a lot of opportunity'
Intel shares were up nearly 7% in Wednesday's session and on track to rise for the third session in a row. Nvidia's stock was off 3.6% and on track to snap a three-session winning streak on a down day for chip stocks, with the PHLX Semiconductor Index off 1.8%.
-Emily Bary
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May 31, 2023 14:29 ET (18:29 GMT)
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