Intel shares experienced a significant rise after former President Donald Trump stated on Truth Social that Apple had agreed to partner with Intel for designing and manufacturing chips in the United States. This announcement comes after over a year of negotiations, with the Wall Street Journal reporting in May that a preliminary deal was reached for Intel to produce some chips for Apple. This partnership would offer Apple an avenue to diversify its manufacturing base, reducing its current heavy reliance on TSMC, whose advanced production lines are highly sought after by AI chipmakers like Nvidia and AMD.
For Intel, securing a contract with Apple provides a consistent demand source from one of the world's largest consumer electronics companies. This move not only boosts Intel's reputation but also strengthens its manufacturing business, which has seen TSMC take the lead in recent years. Analysts suggest that this deal could particularly benefit Intel as it recently began production of its most advanced chip node, 18A-P, an early production stage. While Intel launched 18A for PC chips in January, 18A-P, which offers 9% higher performance or 18% less power than 18A, is seen by analysts as a more probable proving ground for a major external customer like Apple.
The potential Apple deal marks a significant development for Intel, especially considering the US government's efforts to bolster domestic supply chains for semiconductors. The Trump administration previously took a 10% stake in Intel and announced plans to invest approximately $10 billion to expand US factories. This government support and a $5 billion investment from Nvidia last September have contributed to Intel's robust stock performance, with shares increasing over 200% this year after an 84% surge in 2025.
