Shares of Intel surged sharply on Friday after a report said the company had reached a preliminary agreement with Apple to manufacture some of the chips used in the iPhone maker’s devices.
According to a Wall Street Journal report citing people familiar with the matter, Apple and Intel had been engaged in intensive talks for more than a year and finalised a formal agreement in recent months.
Intel shares extended gains following the report and were last up around 14%, while Apple stock rose about 2%.
The potential agreement would represent a major breakthrough for Intel’s manufacturing business, which the company has been aggressively rebuilding as part of its broader turnaround strategy.
Intel has spent the past several years attempting to reposition itself as a major contract chip manufacturer capable of competing with established foundry players.
The report did not specify which Apple products Intel would manufacture chips for.
Earlier this week, Bloomberg News reported that Apple had held exploratory discussions with both Intel and Samsung Electronics regarding production of processors for its devices in the United States.
Intel rally accelerates
The Apple report added to an already strong rally in Intel shares.
The stock has surged roughly 200% since the start of the year as investors increasingly embraced Intel’s turnaround narrative and growing exposure to artificial intelligence infrastructure demand.
Intel reported first-quarter revenue of $13.6 billion, up 7% year-on-year, while adjusted earnings per share came in at $0.29, significantly above analysts’ expectations of $0.01.
The company also posted non-GAAP gross margins of 41%, exceeding guidance.
Chief Executive Officer Lip-Bu Tan said during the earnings release that “the next wave of AI will bring intelligence closer to the end user,” adding that the transition was “significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Investor optimism around Intel has strengthened further as demand for server processors tied to AI workloads has accelerated across the semiconductor industry.
AI partnerships and manufacturing expansion
Intel has also benefited from a series of strategic partnerships and regulatory developments tied to artificial intelligence.
Last month, the company partnered with Tesla and SpaceX to manufacture processors for Elon Musk’s Terafab initiative, a project focused on supporting AI and robotics infrastructure.
Separately, US regulators recently cleared Intel to expand its investment in AI chip developer SambaNova Systems, allowing the companies to deepen their collaboration.
Since becoming CEO in March last year, Lip-Bu Tan has focused heavily on rebuilding Intel’s competitive position through manufacturing expansion, AI-related partnerships, and closer ties with large technology companies.
The reported Apple agreement, if finalised, would mark one of the clearest signs yet that Intel’s foundry strategy is beginning to gain traction among major technology customers.
This post Intel stock supercharged after reports of preliminary deal with Apple may be modified as updates unfold
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