Intel shares surged on Friday after reports that Apple reached a preliminary agreement with the chipmaker to produce some chips for future devices, lifting the value of the U.S. government’s 10% Intel stake acquired under President Donald Trump.
According to market commentary, the stake was valued at about $8.9 billion when it was acquired in August 2025. After Intel’s latest rally, that position was estimated at about $56.5 billion, implying a gain of roughly $47.6 billion in less than eight months.
Intel stock (INTC) jumped as much as 19% during Friday trading before paring part of the move. Shares traded above $120, extending a 2026 rally that has taken the stock up more than 240% year to date.
Source: X
The reported Apple agreement added to investor confidence in Intel’s foundry strategy, which aims to turn the company into a major contract chip manufacturer for large technology customers.
Apple Deal Boosts Intel Foundry Case
The reported agreement between Apple and Intel followed more than a year of talks, according to market reports. The deal would involve Intel manufacturing some chips for Apple devices, although final terms and production details were not immediately disclosed.
Apple has long relied heavily on Taiwan Semiconductor Manufacturing Company for its custom chips. A manufacturing deal with Intel would help diversify Apple’s supply chain while giving Intel a major customer for its foundry business.
Reports said the U.S. government’s 10% stake in Intel played a role in the agreement. The investment was part of a wider effort to support domestic semiconductor production and reduce reliance on overseas chip manufacturing.
Apple shares rose about 1% after the report. Intel’s sharper move reflected investor expectations that the deal could validate its manufacturing turnaround and attract more large customers.
Intel (INTC) Stock Extends 2026 Rally
Intel’s rally has been supported by stronger earnings, improved chip demand and renewed interest in artificial intelligence infrastructure. The company reported first-quarter revenue of $13.6 billion, up 7% from a year earlier.
Earnings per share came in at $0.29, well above Wall Street expectations of $0.01. The company also issued stronger second-quarter guidance, projecting revenue as high as $14.8 billion and earnings per share of $0.20.
Intel’s Data Center and AI revenue rose 22% year over year to $5.05 billion, above analyst expectations of $4.41 billion. The growth reflected stronger demand for advanced computing, AI-related workloads and server processors.
Chief Executive Lip-Bu Tan said demand tied to agentic AI is increasing the need for advanced CPUs and chip-packaging technologies. Intel has also reported progress on its 18A process node, which investors view as a key part of its foundry recovery plan.
Partnerships Shape Turnaround Outlook
Beyond Apple, market reports have pointed to possible partnerships involving Tesla and Alphabet. Tesla has reportedly adopted Intel’s 14A manufacturing process for future chip development, while Alphabet has been linked to Intel’s EMIB chip-packaging technology for AI processors.
These reported relationships have strengthened investor expectations that Intel can compete more effectively in advanced manufacturing and high-performance computing. The company is trying to rebuild market confidence after years of competition from AMD, Nvidia, and TSMC.
However, Intel still faces major execution risks. The foundry business must prove it can deliver chips at scale, meet customer deadlines, and generate stable margins. The AI chip market also remains highly competitive, with rivals investing heavily in accelerators, packaging, and advanced nodes.
The latest share move shows that investors are assigning more value to Intel’s turnaround. The break above $100 and move toward the $125 range has placed the stock closer to the $150 level watched by traders.
