Intel Foundry Yield Reportedly Rises to 85%, Secures Orders From Nvidia, OpenAI and Others

TradingKey - Intel ( INTC) foundry business has reported positive progress. KeyBanc Capital Markets released a report stating that the yield of Intel's 18A advanced process has improved from approximately 65% in the previous quarter to over 85%, signifying marked improvements in production stability and cost control.

KeyBanc stated that with the improvement in the 18A yield, Intel has reportedly secured chip design projects from multiple technology companies, including Nvidia ( NVDA ), Apple ( AAPL ), AMD ( AMD ), Microsoft ( MSFT ), Micron Technology ( MU ), Marvell ( MRVL) and OpenAI. However, Intel and these companies have not yet publicly confirmed specific foundry contracts. The size of the relevant orders, the process nodes adopted, and the timeline for mass production remain unclear. At this stage, these are more likely customer testing, design-ins, or early-stage collaborative projects, and whether they can translate into substantial revenue remains to be seen.

For Intel, the improvement in 18A yield is a critical indicator of whether its foundry business can achieve a turnaround. Higher yields mean more usable chips can be produced per wafer, which helps lower unit costs, improve gross margins, and enhance the company's ability to win external customers. If AI companies like Nvidia and OpenAI ultimately adopt Intel's foundry services, it will significantly boost 18A capacity utilization and help the company amortize the heavy wafer fab construction and R&D investments from the past few years.

From a stock price perspective, this news is expected to strengthen market confidence in Intel's business transformation. Previously, investors had concerns over the ongoing losses in Intel's foundry business, slow customer acquisition, and the competitiveness of its advanced process nodes. If the 18A yield does indeed reach 85% and leading technology companies begin adopting the process, the market may re-evaluate the long-term value of Intel's foundry business, driving its valuation closer to that of a comprehensive semiconductor manufacturing platform rather than a traditional PC chip company.

In the short term, this news may continue to boost Intel's stock price and market risk appetite, especially against the backdrop of sustained growth in AI chip demand. However, whether the stock price can establish a sustained upward trend still depends on whether the orders are officially confirmed, when customers begin mass production, and whether the foundry business's losses actually narrow. If there is a lack of subsequent contract and revenue data support, the stock price could also see profit-taking after a rapid rally.