Intel (NASDAQ: INTC) remains in focus following reports that its 18A process has failed to meet Nvidia’s (NASDAQ: NVDA) expectations.
According to anonymous sources that spoke with Reuters last week, the setback has made NVDA decide against using that node to manufacture its advanced chips.
Still, Futurum chief executive, Daniel Newman, believes the setback – while noteworthy – doesn’t undermine the overall investment case for INTC shares.
With billions in investments from Nvidia, Arm, SoftBank, and the US government, Intel remains central not only to the administration’s commitment to onshore manufacturing but the global effort to expand chip capacity.
That alone is a strong enough reason to remain positive on Intel stock for the longer term, he told CNBC in a recent interview.
Why 18A news doesn’t matter much for Intel stock
According to Daniel Newman, the recent 18A news isn’t as significant for INTC shares as the markets are making it out to be.
Why? Simply because Intel has been upfront about the 18A and how it will primarily be an internal process (the company will use it to ramp up some of its own products only).
The “real inflection point” and Intel’s salvation lies in its upcoming 14A node – expected to enter risk production in 2027 and volume production a year later.
Speaking with CNBC, Newman emphasized that INTC’s importance lies not only in its tech road-map, but in its ability to expand global chipmaking capacity.
“We simply can’t produce enough chips,” he said, pointing to the unprecedented AI-driven demand.
While Taiwan Semi (TSMC) remains the gold standard for consistency and predictability, the sheer scale of demand means companies like Nvidia, Apple, Qualcomm, AMD – all are actively testing alternatives.
In short, INTC’s inclusion in these evaluations is significant – its role as a supplementary capacity provider is a strategic advantage in a constrained market, he concluded.
Why INTC shares remain attractive to own for 2026
Daniel Newman cited strong backing from Washington as another major reason to stick with Intel shares heading into 2016.
The US government has invested about $10 billion in the semiconductor giant, which, according to him, reflects a policy priority that reduces downside risk for INTC investors.
The federal support isn’t about favoritism, but about national strategy, as Intel is positioned as key player in securing domestic semiconductor leadership, Newman added.
All in all, in a market where capacity shortages are reshaping traditional supplier loyalties, Intel’s government-backed expansion offers a durable long-term tailwind.
Put it together with an attractive valuation of a little over 3x sales, and Intel immediately starts to look like a raging “buy” for the long-term.
Wall Street also currently sees upside in INTC stock to as much as $52, indicating potential for a 40% rally from here.
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