Intel Shares Surge 10% on Nvidia, Apple Outsourcing Plans

Intel Corporation's shares climbed more than 10 percent in early trading Wednesday, fueled by reports that Nvidia and Apple plan to outsource portions of their chip manufacturing to Intel's foundries, marking a potential boost for the U.S. chipmaker's struggling contract production business.

The surge followed an exclusive report from DigiTimes Asia, which cited supply chain sources indicating that Nvidia intends to use Intel for low-volume, non-core components of its upcoming Feynman graphics processing unit architecture. The Feynman design, slated for release in 2028 as the successor to the Rubin series, would involve Intel handling production of the input-output die using its advanced 18A or 14A manufacturing processes. Intel would also manage up to 25 percent of the final packaging, while Taiwan Semiconductor Manufacturing Co. would oversee the remaining 75 percent, including the core compute elements on its A16 node. This arrangement would leverage Intel's embedded multi-die interconnect bridge technology for chiplet bonding and support high-bandwidth memory standards like HBM4e or HBM5, enabling handling of trillion-parameter AI models.

Apple is also exploring similar...