Intel (INTC, Financial) is showing renewed investment potential following the appointment of its new CEO, Liwu Chen. Reports suggest that the company is on the verge of securing a gaming GPU order from NVIDIA, sparking optimism among investors. Intel's stock saw a modest increase of 0.85% as investors anticipate further developments.
According to UBS analyst Timothy Arcuri, both Broadcom and NVIDIA, major players in AI chip technology, are considering Intel's 18A process for their manufacturing needs. NVIDIA appears closer to finalizing a deal, potentially making Intel its second or third supplier. Arcuri also noted that AMD is interested in the 18A process. Securing NVIDIA's order would mark a significant victory for Intel, signaling a pivotal moment for its chip manufacturing business.
Intel is also working on enhancing its 18A technology with the 18A-P process, which aims to boost chip performance without increasing power consumption. Analysts believe this could attract clients seeking to maximize performance while minimizing power usage. Liwu Chen is expected to emphasize Intel's chip design and manufacturing capabilities in the short term, continuing the strategy of his predecessor. However, there is limited market knowledge about Chen's plans outside Intel.
Next week, Liwu Chen will make his first public address as Intel's CEO at the Intel Vision Conference, where the market hopes to gain insights into the company's future direction.
Additionally, three Intel board members are reportedly stepping down, as the company shifts its focus from members with academic and financial backgrounds to those with technical expertise. This move highlights Intel's increased emphasis on product and manufacturing goals.
Arcuri also mentioned that Intel's collaboration with Taiwan's United Microelectronics Corporation (UMC) might position them as the second-largest high-performance FinFET supplier after TSMC, potentially providing chips for Apple next year.
