Intel stock was falling on Wednesday following a report that Nvidia had abandoned prospective plans to use the company's chip production process.
Shares of Intel retreated 3.5% in premarket trading ahead of a holiday-shortened Christmas Eve session. Nvidia stock was down 0.5%. Futures contracts tracking the wider S&P 500 index were just below flat.
Nvidia recently tested whether it would manufacture its chips using Intel's production process but stopped moving forward with plans, Reuters reported early Wednesday, citing two anonymous sources.
The news is likely to blame for Intel stock weakness. Shares of the company previously got a boost from news that Nvidia as well as Broadcom were testing its production process, known as 18A.
Nvidia and Intel did not immediately respond to a request for comment.
Despite stalling early Wednesday, Nvidia stock has been on a tear, rallying 7.5% in five days, including amid signs that demand for chips from China is picking up.
