Key Highlights
- A preliminary manufacturing agreement between Apple and Intel has been established for chip production for Apple products
- Intel shares skyrocketed more than 14%, reaching an unprecedented high above $115
- First quarter 2026 revenue for Intel reached $13.6 billion, representing a 7% year-over-year increase, with adjusted EPS of $0.29 compared to analyst consensus of $0.01
- The current administration facilitated the Apple-Intel partnership, with Commerce Secretary Howard Lutnick conducting multiple meetings with Tim Cook
- CEO Lip-Bu Tan reported that demand now exceeds supply capacity: “Twelve months ago, the discussion centered on our ability to remain viable”
Intel (INTC) shares reached unprecedented heights on Friday, climbing more than 14% following the convergence of a preliminary chip production agreement with Apple and exceptional quarterly financial results.
Shares of Intel reached $115.98 during early market hours, with momentum building throughout the trading day. By midday, the stock had appreciated approximately 14.87%.
The driving force behind this surge was news that Apple and Intel have established a preliminary manufacturing agreement for Intel to produce certain chips destined for Apple’s product lineup. Negotiations between these technology giants have been underway for more than twelve months.
Specific details regarding which Apple product lines would utilize Intel-manufactured chips remain undisclosed. Apple’s annual shipments exceed 200 million iPhones, complemented by millions of iPads and Mac computers. Neither corporation provided official statements.
The current administration played a pivotal role in facilitating this partnership. Commerce Secretary Howard Lutnick conducted numerous meetings with Apple CEO Tim Cook throughout the past year to advance the collaboration. President Trump personally championed Intel’s capabilities to Cook during a White House discussion.
“The moment we entered, Apple followed, Nvidia followed, numerous intelligent players followed,” Trump stated in January.
The federal government transformed approximately $9 billion in federal funding into Intel equity last summer, securing a 10% ownership position in the corporation. This governmental support enhanced Intel’s standing with prospective collaborators.
First Quarter Performance Exceeds Projections
The Apple partnership announcement coincided with impressive quarterly results. Intel reported first quarter 2026 revenue of $13.6 billion, marking a 7% year-over-year growth. Adjusted earnings per share reached $0.29 — substantially exceeding the analyst consensus forecast of merely $0.01.
Non-GAAP gross margins achieved 41%, surpassing guidance targets. CEO Lip-Bu Tan emphasized that demand for Intel’s processors and fabrication capabilities is accelerating as artificial intelligence applications migrate toward end-user environments.
Apple has faced mounting pressure to diversify its semiconductor supply chain. During its most recent earnings presentations, Cook attributed constrained iPhone availability to limited access to advanced chip technology. These supply limitations are projected to persist into the present quarter, impacting multiple Mac product lines.
Apple maintains significant dependence on TSMC, but explosive artificial intelligence chip demand from Nvidia and competing firms has diminished Apple’s negotiating position with the Taiwanese foundry.
Intel’s Comprehensive Revival Strategy
Intel has been executing a rapid transformation under Tan, who assumed leadership in March 2025. He has restructured the executive team, recruited former TSMC executive Wei-Jen Lo, and committed substantial resources to Intel’s cutting-edge manufacturing technology, designated as 14A.
Intel also obtained regulatory approval to expand its stake in AI chip developer SambaNova, strengthening that strategic partnership.
Nvidia committed $5 billion to Intel in September, establishing an agreement for Intel to manufacture customized data center processors for Nvidia. Elon Musk revealed plans last month to construct a chip fabrication facility in Texas with Intel as a core partner in his Terafab initiative.
Intel has now secured foundry collaborations with Apple, Nvidia, and SpaceX/Musk — precisely the three corporations that Lutnick had been pursuing for partnerships.
Tan articulated the situation clearly during the earnings discussion: “Currently, the focus is on how rapidly we can expand manufacturing capacity.”
