Intel’s 18A Process: Nvidia and Apple Could Be Next Major Chip Customers

Intel's foundry ambitions just got a massive credibility boost—and potentially two of the biggest names in tech as anchor clients.

The New Silicon Power Play

Rumors are swirling that Nvidia and Apple are in advanced talks to tap Intel's cutting-edge 18A manufacturing process. This isn't just another contract; it's a potential industry earthquake. If the deals land, Intel Foundry Services instantly transforms from an ambitious challenger into a foundational pillar for the next generation of AI and consumer hardware.

Why This Changes Everything

For years, the semiconductor landscape has been a tense duopoly. Intel's push into the foundry business with its 18A node—promising performance and power efficiency leaps—was always a long-term bet. Securing design wins from the world's most valuable company (Apple) and the undisputed king of AI silicon (Nvidia) would validate that bet overnight. It signals that Intel's process technology is not just competitive, but compelling enough for the most demanding customers to diversify their supply chains.

The Ripple Effects

This move would redraw the competitive map. TSMC would face its most serious challenge in years for leading-edge logic. For Apple, it offers a strategic alternative for future A-series or M-series chips, reducing reliance on a single supplier. For Nvidia, it could mean dedicated capacity for next-gen AI accelerators, bypassing the queue at other foundries. The geopolitical implications are just as significant, bolstering U.S.-based advanced manufacturing.

A Calculated Gamble Pays Off?

Intel's massive capital expenditure on its foundry reboot looked like a desperate, shareholder-value-destroying gamble to some on Wall Street. Funny how a couple of tentative customer announcements can turn a 'costly vanity project' into a 'visionary vertical integration strategy.' The market's memory is famously short, and its praise is cheap—but the revenue from these deals wouldn't be.

If these talks materialize into orders, the narrative around Intel shifts from a legacy player playing catch-up to a central architect of the future compute stack. The chip wars just entered a new, unpredictable phase.

TLDR

• Intel launched its Panther Lake laptop chip at CES 2026, the first processor built on its new 18A manufacturing process
• The Core Ultra Series 3 chips promise 60% better performance than the previous Lunar Lake generation
• Melius Research upgraded Intel from Hold to Buy with a $50 price target, citing potential future deals with Nvidia and Apple
• Intel plans to release a handheld gaming platform based on Panther Lake designs later this year
• The company faced yield issues with Panther Lake production but executives say manufacturing is improving monthly

Intel shares moved slightly higher Monday as the chipmaker unveiled its next generation of processors at the Consumer Electronics Show in Las Vegas. The Panther Lake launch marks a critical moment for the company’s manufacturing comeback story.

Intel Corporation, INTC

The Core Ultra Series 3 processors represent Intel’s first high-volume product using its 18A manufacturing process. This is the same technology Intel hopes will attract major customers like Nvidia and Apple in the coming years.

CEO Lip-Bu Tan confirmed the company delivered on its promise to ship 18A products in 2025. The Panther Lake chips feature a new transistor design and power delivery system made possible by the advanced manufacturing node.

Intel claims the Series 3 chips deliver 60% better performance compared to the previous Lunar Lake generation. The company also created a separate graphics chiplet that works together with other mini-chips to FORM the complete processor.

Jim Johnson, senior vice president of Intel’s PC group, shared technical details about the new lineup. The chips will power everything from laptops to handheld gaming devices.

Expanding Beyond Laptops

Intel plans to launch a handheld gaming platform based on Panther Lake designs this year. Handheld PCs have grown in popularity recently, giving Intel another market to target.

The company also showed refreshed Arrow Lake models and previewed new Arc graphics processors, including the Arc B770. Intel’s AI work will be featured throughout the week at CES.

The 18A process faces scrutiny after Reuters reported yield issues last year. Yield refers to how many working chips come from each silicon wafer. Intel executives say yields are improving monthly and won’t delay the launch.

Analyst Confidence Builds

Melius Research upgraded Intel from Hold to Buy on Monday. Analyst Ben Reitzes raised his price target from $44 to $50.

Reitzes pointed to Intel’s 14A process, set to go live next year, as a key reason for his optimism. He noted that CEO Tan’s business relationships could bring major wins. “There is a good chance that Nvidia (an Intel shareholder) and Apple take a hard look at producing chips on the 14A node by 2028/2029,” Reitzes wrote.

That news could filter into the stock throughout 2026, he added. Intel shares have rallied 98.19% over the past year.

The Panther Lake launch comes as Intel tries to win back market share from Advanced Micro Devices. Previous-generation Lunar Lake chips were largely manufactured by TSMC, not Intel’s own fabs.

AMD CEO Lisa Su was scheduled to speak at CES Monday evening. The company announced a multibillion-dollar deal with OpenAI for its MI400 chips, expected to generate tens of billions in revenue.

Nvidia CEO Jensen Huang also spoke at CES Monday. He said the company’s next generation chips are in “full production” and deliver five times the computing power of previous models for AI applications.

Intel’s 18A process represents the first major product launch under this new manufacturing technology. The company hopes proving it can manufacture competitive chips in-house will attract foundry customers and restore investor confidence in its turnaround plan.