Intel stock sees 10% pop on Apple chip partnership rumors

Intel’s stock increased by about 10.3% after a public report by a well-known analyst restarted the conversation about a potential partnership between Apple and Intel. 

The discussion is about whether or not Apple will use Intel to build its lowest-end M-series chips. 

On Friday, Intel shares saw a 10.3% increase and closed at about $40.56, their strongest finish in over a year despite the stock trading at just $20.22 in January. In 2024, Intel shares fell approximately 60%. 

Sudden surge in Intel’s stock

Intel regained a bit of its momentum in March 2025 after appointing a new CEO, Lip Bu Tan. Since then, the company put efforts into restructuring and has reduced its workforce by 13% quarter over quarter to 88,400 employees by the end of the third quarter. Intel also returned to profitability in Q3 2025 and reported a net income of $4.1 billion despite recording a $16.6 billion loss one year prior.

The current surge in stock value is due to renewed attention around whether or not Apple will become a major client of Intel again to manufacture its M-series chips. 

The buzz began when Ming-Chi Kuo, a well-known analyst with deep ties to Apple’s supply-chain ecosystem, made a public note saying his latest industry surveys show that the “visibility on Intel becoming an advanced-node supplier to Apple has recently improved significantly.” 

According to Kuo, Apple currently holds a non-disclosure agreement (NDA) with Intel and has already received Intel’s “18AP PDK 0.9.1GA.” Intel is expected to deliver the next version of the kit (PDK 1.0/1.1) in early 2026. If all goes well, Intel could begin supplying Apple’s lowest-end M-series chips by mid- to late-2027. 

It is believed that these chips will work with devices like the MacBook Air and iPad Pro, whose total sales currently sit at approximately 20 million units for 2025, with expectations of 15 to 20 million units in both 2026 and 2027. 

A successful deal with Apple would revive Intel’s foundry business, now called Intel Foundry Services (IFS), and would also be a step forward in its efforts to regain relevance in advanced manufacturing. 

Intel’s market revival 

Earlier this year, Intel reportedly approached Apple about a possible direct investment. Partnering with Intel would be Apple’s way of demonstrating support for the Trump administration’s emphasis on domestic manufacturing and “Made in USA” products. It would also diversify Apple’s supply chain beyond its dependence on TSMC, reducing geopolitical risk associated with Taiwan’s complex relationship with China.

The partnership would also lend credibility to Intel’s foundry services, which have faced skepticism from the market about its ability to compete against a tech giant like TSMC. 

Intel also recently secured major backing from other partners like Nvidia, which invested $5 billion in Intel separately from its foundry business. SoftBank invested around $2 billion targeted at Intel’s data center and foundry operations. 

The U.S. government reportedly converted approximately $8.9 billion of CHIPS Act support into a 10% ownership stake in the company to boost domestic chip manufacturing. 

Institutional investors like Norway’s sovereign wealth fund, Norges Bank Investment Management, initiated a new Intel position worth roughly $1.58 billion, representing more than 70 million shares. Polish pension manager PZU increased its Intel stake to make it the third-largest position in its portfolio. Approximately 64.5% of Intel shares are now held by institutional investors and hedge funds.

Despite these investments, a large portion of Wall Street does not believe that Intel’s foundry services can catch up with TSMC, which continues to lead the industry in scale, production capacity, and advanced-node technology. 

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