Key Highlights
- Intel shares climbed approximately 14% Friday, followed by an additional 6% gain in Monday premarket trading, reaching $130.13.
- A preliminary manufacturing agreement between Intel and Apple marks a significant win for Intel’s foundry operations, with U.S. government involvement facilitating discussions.
- Separate reports indicate Intel is pursuing negotiations with SK Hynix regarding advanced chip-packaging solutions, suggesting a second major foundry partnership.
- Following a $9 billion grant conversion, the U.S. government now maintains approximately 10% ownership in Intel.
- First quarter results significantly exceeded analyst projections — posting adjusted EPS of $0.29 versus $0.01 forecast, with revenue reaching $13.58B against $12.42B estimates.
The Intel transformation narrative continues to unfold as one of 2026’s most remarkable turnaround stories. Shares have skyrocketed more than three-fold year-to-date, with the most recent surge driven by consecutive major announcements that signal potential revival for its foundry operations.
Friday brought news via The Wall Street Journal revealing a preliminary manufacturing partnership between Intel and Apple for processor production. This agreement represents the culmination of negotiations spanning over twelve months, with notable involvement from federal authorities who previously restructured $9 billion in grants as equity stakes — establishing roughly 10% government ownership of the semiconductor giant.
The announcement propelled INTC shares upward by 14% during Friday’s session. Momentum continued into Monday’s premarket hours with an additional 6% advance, pushing the stock to $130.13.
A second development emerged shortly after. South Korean outlet ZDNet Korea disclosed ongoing discussions between Intel and SK Hynix regarding advanced chip-packaging capabilities for integrating high-bandwidth memory with general-purpose processors — technology currently dominated by TSMC. Official statements from both companies remain pending.
Should these partnerships materialize, Intel’s foundry division would secure two major external clients within weeks after operating without significant outside customers.
Strong First Quarter Performance Preceded Headlines
The Apple partnership announcement didn’t emerge in isolation. Intel had already demonstrated impressive financial momentum through its latest quarterly report.
First quarter performance substantially surpassed Wall Street expectations. The company delivered adjusted earnings per share of $0.29 versus consensus estimates of merely $0.01. Revenue totaled $13.58 billion, comfortably exceeding the projected $12.42 billion. Data center operations led growth metrics, posting 22% year-over-year expansion to $5.1 billion, fueled by robust CPU demand supporting AI infrastructure.
CEO Lip-Bu Tan emphasized during the earnings conference: “The CPU is reinserting itself as the indispensable foundation of the AI era — this isn’t just our wishful thinking, it’s what we hear from our customers.”
The earnings surprise triggered a 20% after-hours surge when results were disclosed.
Analyst Response and Market Context
Bank of America adjusted its Intel price objective to $96 from $56 following the Apple development, though maintained its Underperform rating. The firm recognized potential revenue significance from the foundry agreement while preserving overall caution.
Prior to these announcements, Intel’s only confirmed external foundry relationship involved Terafab — connected to Elon Musk and intended to support Tesla alongside other Musk ventures — though specific arrangement details remain undisclosed.
Broader market conditions provided additional support. The S&P 500 advanced 0.84% Friday, closing at 7,398.93, while the Nasdaq climbed 1.71% to 26,247.08, both establishing new record highs. The global semiconductor industry has accumulated approximately $3.8 trillion in additional market capitalization during the past six weeks.
April employment data showed 115,000 non-farm payroll additions, exceeding consensus forecasts, with unemployment holding at 4.3%.
