technology
Intel Shares Rise 19% After Preliminary Deal to Make Chips for Apple Devices
Intel and Apple reached a preliminary agreement for Intel to manufacture some chips used in future Apple devices, the Wall Street Journal reported. Intel stock rose as much as 19 percent on the news while Apple shares gained 1 percent. The deal comes after the U.S. government acquired a stake in Intel last August that has since grown significantly in value.
May 7, 8:25 PM·3m read17 sources
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Intel shares jumped as much as 19 percent on Friday after the Wall Street Journal reported that the company reached a preliminary agreement with Apple to produce chips for some of the iPhone maker's future devices. The talks between the two companies spanned more than a year.
Apple shares rose 1 percent while the broader Nasdaq 100 climbed amid renewed optimism in the artificial intelligence sector. The preliminary deal marks a partial return to cooperation between the companies more than a decade after Apple began shifting its Mac computers away from Intel processors to its own custom silicon.
Investors responded enthusiastically to the news, pushing Intel shares up sharply before the stock pared some of its gains. The company's shares have surged more than 240 percent so far in 2026. The U.S. government's roughly 10 percent stake in Intel played a critical role in facilitating the agreement.
The government first invested $8.9 billion in the company last August. That stake is now worth around $55 billion following Friday's rally in the stock price. Intel has been on an uptrend since the initial government investment. The chipmaker posted strong first-quarter results that further boosted investor sentiment.
Optimism around artificial intelligence applications has also contributed to gains in semiconductor stocks, helping the Nasdaq 100 outperform the S&P 500 by a wide margin over the past month.
The agreement calls for Intel to manufacture certain chips destined for Apple products, though specific technical or financial terms were not disclosed. The Wall Street Journal first reported the development. Apple began moving away from Intel chips in its Mac lineup in 2020 with the introduction of its M1 processor.
The transition to Apple Silicon delivered significant performance and efficiency gains that helped the company capture greater market share in personal computers. Friday's reported deal suggests Apple may still rely on external suppliers for select components even as it continues developing its own silicon.
