Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) are carrying out manufacturing tests with Intel (NASDAQ:INTC) Reuters reported, citing people with knowledge of the matter. Shares of Intel jumped about 5% premarket on Monday.

Chip designers Nvidia and Broadcom are running manufacturing tests with Intel, two sources familiar with the matter told Reuters, demonstrating early confidence in the struggling company's advanced production techniques.

Intel’s board has been in talks with potential buyers and the U.S. government, The Wall Street Journal said. Former CEO Gelsinger stepped down in December.

Broadcom reportedly has some interest in Intel’s design business. But one analyst says “a lot seems like it needs to happen” for a deal to become reality.

Intel was gaining early Monday on the prospect its chip-manufacturing business could gain major customers in Nvidia and Broadcom. Chip designers Nvidia and Broadcom are both running tests on Intel’s 18A manufacturing process,

Intel shares powered higher in early Monday trading following reports that both Nvidia and Broadcom are looking to test the chipmaker's advanced AI production techniques in what could be an early and important endorsement of its nascent turnaround plans.