Key Takeaways
- A preliminary manufacturing agreement between Apple and Intel has been established for producing chips destined for Apple products
- Intel shares jumped more than 14%, establishing a fresh all-time peak exceeding $115 per share
- First-quarter 2026 revenue reached $13.6 billion, representing a 7% increase from the prior year, with adjusted earnings per share of $0.29 versus analyst projections of $0.01
- The current administration, particularly Commerce Secretary Howard Lutnick, played an instrumental role in facilitating negotiations between Apple and Intel through direct engagement with CEO Tim Cook
- CEO Lip-Bu Tan emphasized the dramatic shift in market conditions: “Twelve months ago, discussions centered on our viability as a company”
Intel (INTC) stock reached unprecedented territory on Friday, climbing over 14% as news of a tentative chip production agreement with Apple coincided with exceptional quarterly financial results.
Shares of Intel peaked at $115.98 during morning trading hours, with momentum building throughout the day. By the afternoon session, the stock had gained approximately 14.87%.
The main driver behind this rally was news that Apple and Intel have struck a preliminary arrangement for Intel to produce certain semiconductors for Apple’s product lineup. Negotiations between the technology giants have been underway for over twelve months.
Specific details regarding which Apple devices would utilize Intel-manufactured chips remain undisclosed. Apple’s annual shipments include more than 200 million iPhones, plus millions of Mac computers and iPads. Neither company provided official statements on the matter.
Government involvement proved crucial in facilitating this partnership. Commerce Secretary Howard Lutnick conducted multiple meetings with Apple CEO Tim Cook throughout the past year, advocating for the collaboration. President Trump also directly promoted Intel’s capabilities to Cook during a White House discussion.
“The moment we entered, Apple followed, Nvidia came aboard, numerous forward-thinking companies joined,” Trump stated in January.
The federal government transformed approximately $9 billion in grants into Intel equity last summer, securing a 10% ownership position. This governmental support enhanced Intel’s standing with prospective collaborators.
First-Quarter Results Surpass Analyst Projections
The Apple partnership announcement complemented impressive financial performance. Intel reported first-quarter 2026 revenue of $13.6 billion, marking a 7% year-over-year increase. Adjusted earnings per share reached $0.29 — significantly exceeding the consensus forecast of merely $0.01.
Non-GAAP gross margins reached 41%, surpassing internal guidance. CEO Lip-Bu Tan noted that demand for Intel’s processors and fabrication services is accelerating as artificial intelligence workloads migrate toward edge computing environments.
Apple faces mounting pressure to expand its semiconductor supply chain. During recent earnings presentations, Cook attributed iPhone supply constraints to limited access to cutting-edge chip manufacturing. These bottlenecks are anticipated to persist through the current quarter, impacting various Mac product lines.
Apple’s heavy dependence on TSMC has become problematic as surging AI chip orders from Nvidia and competitors have diminished Apple’s negotiating power with the Taiwan-based foundry.
Intel’s Comprehensive Revival Strategy
Intel has undergone rapid transformation under Tan’s leadership since he assumed control in March 2025. He has restructured senior management, recruited former TSMC executive Wei-Jen Lo, and committed substantial resources to Intel’s cutting-edge 14A manufacturing technology.
Intel also secured regulatory approval to expand its stake in AI chip developer SambaNova, strengthening that strategic relationship.
Nvidia committed $5 billion to Intel in September, accompanied by an agreement for Intel to manufacture specialized data center processors for Nvidia. Elon Musk revealed plans last month to construct a semiconductor facility in Texas with Intel as a primary partner for his Terafab initiative.
Intel now maintains foundry relationships with Apple, Nvidia, and SpaceX/Musk — representing all three major companies that Lutnick had targeted for collaboration.
Tan summarized the situation during the earnings call: “Our current challenge involves scaling manufacturing capacity as rapidly as possible.”
