Intel Stock Fell on China Worries—but That’s Not the Real Problem

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EUV is needed to produce advanced computer chips at scale and with acceptable yields for 5nm and below. Future AMD and Intel computer processors will rely on EUV machines. If China wants competitive modern computers that aren’t slow, it must continue buying American chips.

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Intel, however, is facing a more significant challenge than this latest round of Chinese governmental restrictions. Last week, Nvidia revealed its upcoming lineup of AI computers led by its top-of-the-line GB200 NVL72 liquid-cooled rack system with 72 Blackwell GPUs.

The issue for Intel is that the upcoming best performing AI system from Nvidia won’t use Intel server processors and will incorporate Nvidia’s Arm-based CPUs. Intel is likely to lose server chip market share to the Arm-based Nvidia AI systems.

That’s the main problem for Intel—not the noise about China.

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