Semiconductor giant Intel (INTC) entered this year in a state of disarray. It had no permanent CEO until March, when industry veteran Lip-Bu Tan took over after former CEO Pat Gelsinger was forced out. Intel’s foundry business, a capital-intensive endeavor meant to open up Intel’s manufacturing technology and facilities to third-party customers, wasn’t winning meaningful customers. Tan made it clear that without significant external revenue, Intel may have to get out of the chip manufacturing business altogether.
For the foundry to work, Intel needs plenty of cash to scale up its Intel 18A process and complete development of its upcoming Intel 14A process. It also needs enough external customers to justify those massive investments. The company got both on Thursday, courtesy of Nvidia (NVDA).
This post originally appeared at The Motley Fool.