Intel stock slides after Nvidia stalls 18A tech tests

Intel (INTC) shares fell after reports that Nvidia (NVDA) halted testing of Intel’s 18A manufacturing technology and U.S. officials signaled the company is not guaranteed special treatment.

The developments followed a Reuters report detailing Intel’s recent engagement with the White House after President Donald Trump publicly criticized Intel Chief Executive Officer Lip-Bu Tan in August.

Following the criticism, Tan sought a meeting with the administration as Intel faced financial and operational pressure. He prepared with support from industry leaders, including Nvidia Chief Executive Jensen Huang and Microsoft Chief Executive Satya Nadella.

The Oval Office meeting lasted about 40 minutes. It included Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. Discussions centered on stabilizing and rebuilding Intel as U.S. semiconductor policy became a national priority.

Tan agreed to a proposal under which the U.S. government received equity in Intel in exchange for additional funding under the CHIPS Act. The agreement provided $5.7 billion in cash and made the U.S. government Intel’s largest shareholder.

After the deal, Lutnick publicly highlighted the agreement. Government involvement improved Intel’s standing with potential partners and customers aligned with federal industrial policy.

Since Tan became CEO in March, Intel’s stock has risen about 80%, outperforming much of the broader market. The company secured investments including $5 billion from Nvidia and $2 billion from SoftBank.

Tan also began a broad restructuring. Intel reduced its workforce by about 15%, simplified management layers, and emphasized faster engineering-focused decisions.

Despite the momentum, manufacturing challenges remain. A Commerce Department official told Reuters that Intel is not considered “too strategic to fail,” and said Lutnick communicates with multiple industry participants.

Intel has said its advanced manufacturing process is progressing. However, Nvidia recently tested Intel’s 18A technology and chose not to proceed. Nvidia made no commitment to produce chips at Intel facilities.

Tan acknowledged the limited scope of the Nvidia relationship, stating that current efforts are focused on collaboration.

After the Reuters report, Intel shares fell as much as 4%. The stock is down nearly 20% from its recent early-month high.