Intel Shares Rise 19% After Preliminary Deal to Make Chips for Apple Devices

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.

The government's involvement in Intel reflects broader efforts to bolster domestic semiconductor manufacturing capacity. The stake has grown in value alongside the company's recent performance, delivering substantial returns on the initial $8.9 billion investment.

“Intel stock soared as much as 19% on Friday, before paring some of that gain. Strong winds, dry conditions and the presence of land mines have complicated firefighting efforts. Radiation levels have so far remained within normal limits according to Ukrainian officials, though monitoring continues. A similar wildfire in 2020 caused radiation readings to spike as much as 16 times above normal before the blaze was brought under control after several weeks. Ukrainian sources attributed the latest fire to a drone crash but did not identify its operator. Some social media accounts have linked it to Russian military activity in the region. Meanwhile, motorsport's governing body announced an agreement in principle with Formula One teams and power unit manufacturers to adjust 2027 engine regulations. The changes would increase internal combustion engine output by about 50kW while reducing electric power system deployment by a similar amount. The move comes after criticism from drivers including Max Verstappen, who had threatened to leave the sport over the prior regulatory direction. The agreement came five weeks late and $8 billion above the initial proposal. It balances renewable energy initiatives with approvals for certain fossil fuel projects. The Virginia Supreme Court voided a congressional redistricting map drawn by Democrats, ruling that the process violated state constitutional requirements for amending the constitution. The decision prevents the map from taking effect and has drawn reactions across political commentary outlets. U.S. military forces disabled two tankers attempting to breach a blockade in the Strait of Hormuz, according to reports citing naval operations in the area. The incidents occurred amid tensions affecting energy shipping routes, prompting some countries to adjust LNG purchasing plans.”