A fresh wave of speculation has reignited interest in Intel’s (NASDAQ: INTC) foundry ambitions.
According to recent reports, Microsoft is preparing to manufacture its next-generation Maia AI chip using INTC’s advanced 18A or 18A-P process.
While Intel had first announced MSFT as a customer in early 2024, the nature of the collaboration remained vague.
Now, industry chatter suggests Microsoft’s in-house AI chip will be fabricated at Intel Foundry, marking a potential shift in the cloud giant’s supply chain strategy.
Intel stock responded positively to the update – and is currently up more than 100% versus its year-to-date low amid renewed optimism about its role in the artificial intelligence arms race.
Why would Microsoft bet on Intel Foundry?
Microsoft’s choice – if confirmed – would reflect a strategic pivot toward energy-efficient, domestically manufactured AI chips.
Intel’s 18A process stands out as the only commercially available node with backside power delivery, a breakthrough that improves energy efficiency and performance-per-watt – critical metrics for hyperscale data centres.
Sure, the firm’s rival, TSMC, the dominant player in advanced chip fabrication, is racing to expand its 2nm capacity in Arizona.
But ramping up new fabs is a multi-year endeavour, and the AI sector is evolving at breakneck speed.
For MSFT, Intel’s US-based foundry offers not just technical advantages but also supply chain resilience and alignment with domestic manufacturing goals.
If confirmed, the giant’s bet could prove a long-term catalyst for INTC stock.
Significance of the Microsoft report for INTC shares
If Microsoft’s Maia 3 chip is indeed being built on Intel’s 18A node, it could be the beginning of a long-term partnership.
This would suggest future iterations of MSFT’s custom accelerators may also roll off Intel’s lines, especially if yields and turnaround times meet expectations.
Onboarding Microsoft would mark a significant endorsement of INTC’s foundry capabilities, which have long struggled to gain traction against TSMC.
For investors, the news signals a potential inflection point: Intel isn’t just chasing AI – it’s being chosen for it.
That vote of confidence from a top-tier cloud provider could catalyse broader adoption among other hyperscalers and fabless chip designers – potentially kicking off a multi-year rally in Intel shares.
Is it too late to buy Intel stock?
Intel’s foundry revival isn’t happening in isolation. The company has secured strategic backing from the US government, along with investments from industry heavyweights like Nvidia and SoftBank.
Under its new chief executive, Lip-Bu Tan, INTC has returned to profitability as well and ramped up its roadmap, with Panther Lake and Clearwater Forest chips already in the pipeline.
The 18A node is just the beginning – 14A and 18A-PT are designed specifically for AI and high-performance computing workloads.
Plus, there have already been reports that AMD is also in early talks to make chips at Intel Foundry.
For investors who’ve been skeptical, these updates – if validated – could be the clearest signal yet that INTC’s transformation is real indeed.
So, it may not be too late to buy into Intel’s stock’s AI upside.
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