Chart of the Day: INTC

Business could gain major customers in Nvidia and Broadcom. Chip designers Nvidia and Broadcom are both running tests on Intel's 18A manufacturing process, Reuters reported on Monday, citing people familiar

with the matter. Nvidia declined to comment on the report, while Intel and Broadcom didn't immediately respond to requests for comment early Monday.

Intel shares were rising 5.1% in premarket trading. Intel has repeatedly claimed its 18A process is poised to give it a

technological lead in chip manufacturing against dominant rival Taiwan Semiconductor Manufacturing, or TSMC.

Signing customers like Nvidia and Broadcom that depend on TSMC to make their artificial-intelligence chips would be a significant coup for Intel. It has struggled to make its chip-manufacturing operations profitable, with the Foundry business losing $13.4 billion last year. If Intel could get significant momentum behind the chip-manufacturing business, it could weaken the argument for splitting up the company. Multiple media reports have suggested TSMC has considered taking a stake in Intel's chip factories, while Broadcom was looking at buying Intel's product business.

However, there is no guarantee that testing will lead to manufacturing deals. "Testing is something that is pervasive and it shouldn't surprise anyone that companies like Broadcom and Nvidia are exploring options, including Intel. It

should also be noted that this is unlikely to be the first time that either of these companies have been testing with Intel," wrote Futurum Group CEO and technology researcher Daniel Newman in a post on social-media site X. Nvidia and Broadcom's tests aren't being conducted on complete chip designs and many potential customers are unlikely to be unable to produce chips on Intel's 18A process until at least mid-2026, according to the report.

The chart and news about Intel suggest a potentially bullish outlook for the stock this week, but there are key technical and fundamental factors to monitor.

Key News Impact

1. ** Positive Catalyst **: Intel's shares are up 5.1% in premarket trading due to reports that Nvidia and Broadcom are testing its advanced 18A manufacturing process. If these tests lead to manufacturing deals, it could mark a significant shift in Intel's competitive positioning against TSMC.

2. **Long-Term Uncertainty**: While the news is promising, the testing phase does not guarantee deals, and full production on the 18A process is unlikely before mid-2026. This limits the immediate impact on Intel's revenue or profitability.

Technical Analysis

From the attached chart (4-hour timeframe), here are the key observations:

Support and Resistance Levels

Support Levels:

- $24.62: This level aligns with recent consolidation and could act as immediate support.

- $23.09: A lower support zone based on historical price action.

- $21.02 and $20.00: Deeper support levels that have held during prior declines.

Resistance Levels:

- $25.08–$25.13: The current price zone is testing resistance, as indicated by price rejection in previous sessions.

- $26.00–$26.50: A breakout above $25 could target this level next, as it aligns with prior highs.

Volume Profile (VPVR)

- The volume profile shows significant activity around the $24–$25 range, indicating strong interest at these levels.

- Above $25, volume thins out until around $26, suggesting a potential quick move if resistance is broken.

Trend Indicators

- The stock has rebounded sharply from its recent lows near $19, forming higher lows—a bullish sign.

- A symmetrical triangle/pennant pattern appears to have broken out to the upside recently (highlighted in pink), which could signal continuation of the upward trend.

Outlook for This Week

1. **Bullish Scenario**: If Intel sustains its premarket momentum and breaks above $25.08 convincingly, it could target the next resistance around $26–$26.50.

2. **Bearish Scenario**: Failure to hold above $24.62 may result in a pullback toward stronger support at $23 or lower.

The combination of positive news and technical strength suggests Intel may trend higher this week, particularly if broader market sentiment remains supportive. However, traders should watch for resistance at $25–$26 and monitor whether the news leads to sustained buying interest or profit-taking after the initial surge.