Key Takeaways
- Shares of Intel rallied approximately 7–8% Thursday following President Trump’s Truth Social announcement that Apple committed to collaborating with Intel for domestic chip design and manufacturing.
- The arrangement’s specific terms remain unclear, with neither Intel nor Apple issuing official confirmation of the partnership.
- Wall Street analysts from Wedbush view a confirmed agreement as a significant validation of Intel’s foundry operations, though they note the partnership seems to be in early stages.
- Industry experts anticipate Apple would utilize Intel facilities for older-generation or budget silicon rather than cutting-edge processors currently manufactured by TSMC.
- Over the trailing twelve months, Intel shares have skyrocketed 464%, bringing the semiconductor giant’s valuation to $608.7 billion.
Shares of Intel (INTC) experienced a significant rally of approximately 7–8% during Thursday’s morning session following a Truth Social announcement from President Donald Trump stating that Apple had committed to collaborating with Intel for chip design and production within the United States.
In his Truth Social message, Trump was straightforward: “Apple has agreed to work with Intel to design and build its Chips in America.” The president positioned this announcement within his administration’s larger initiative to repatriate semiconductor production to American facilities.
Intel shares gained approximately $8.86, reaching around $129.96 during early Thursday market activity. Apple shares experienced a modest premarket increase of about 1.3%.
Trump’s announcement also mentioned Nvidia and Elon Musk’s Terafab initiative, highlighting multiple domestic semiconductor commitments he attributed to his administration’s efforts.
“I decided to help Intel because we need to design and build our Chips right here in America,” Trump stated in his post.
The Terafab initiative, which Trump characterized as “the largest Chip Factory in the World,” represents Intel’s foundry division’s first significant external customer commitment, as the business had historically manufactured semiconductors exclusively for internal use.
At press time, neither Intel nor Apple had released official statements verifying the partnership. According to CNBC reports, the news organization reached out to both corporations and the White House seeking additional information.
Wall Street’s Perspective
Analysts at Wedbush characterized a confirmed partnership as a substantial victory for Intel’s corporate transformation under CEO Lip-Bu Tan’s leadership, describing it as a “genuine endorsement” of the company’s foundry objectives. Securing Apple as a customer alongside Nvidia and government-supported initiatives would significantly enhance Intel’s credibility as a contract semiconductor manufacturer.
However, Wedbush analysts emphasized that specific partnership details remain sparse. Trump’s statements suggest an early-stage agreement that lacks comprehensive definition.
The Wedbush team also projects that any semiconductors Apple manufactures through Intel would involve legacy or entry-level chips — rather than the sophisticated application processors driving iPhones and Mac computers. Those premium chips are anticipated to continue coming from TSMC.
Wedbush reaffirmed its Outperform rating on Apple stock with a $400 price objective. Apple shares last traded near $299.
Intel’s Corporate Transformation Under New Leadership
Tan assumed the CEO position in early 2024 and has focused on restoring investor confidence following years of production challenges and competitive losses to industry rivals.
Intel was notably absent during the artificial intelligence boom’s initial phase. However, a sequence of significant announcements — including Nvidia’s commitment to manufacture chips using Intel’s foundry services — has transformed the company’s market perception.
The semiconductor manufacturer’s stock has appreciated 464% during the past twelve months, elevating Intel’s market capitalization to $608.7 billion.
The semiconductor industry broadly has experienced robust gains. The PHLX Semiconductor Sector Index, tracking the thirty largest U.S.-listed chip manufacturers, has climbed 90% year-to-date.
Wedbush analysts observed that the Apple collaboration, if formally executed, would enable Apple to broaden its manufacturing supplier network and decrease dependence on TSMC amid rising semiconductor demand.
Trump’s post indicated the Apple-Intel agreement followed his administration’s role in securing Nvidia’s participation. “First, we helped bring in Nvidia, and they agreed to build their first level Chips with Intel,” he wrote.
