Key Takeaways
- Intel shares jumped approximately 14% on Friday with an additional ~6% gain in Monday premarket, reaching around $130.13.
- A preliminary manufacturing agreement between Apple and Intel was reached, with U.S. government facilitation playing a key role.
- Reports indicate Intel is negotiating with SK Hynix regarding chip-packaging solutions, which could secure a second major foundry client.
- Following conversion of $9 billion in grants to equity, the U.S. government owns approximately 10% of Intel.
- First quarter results exceeded forecasts significantly — adjusted EPS reached $0.29 versus $0.01 expected, while revenue totaled $13.58B against $12.42B consensus.
Intel’s performance in 2026 has caught many investors off guard. The chipmaker’s shares have more than tripled year-to-date, with the latest rally driven by consecutive major announcements that could reshape its foundry business.
According to Friday’s Wall Street Journal report, Intel and Apple have finalized preliminary terms for Intel to produce processors designated for Apple products. This agreement follows negotiations spanning over 12 months, with involvement from the U.S. federal government, which now holds roughly 10% of Intel’s equity after converting $9 billion in grants into company shares.
The announcement triggered a surge of as much as 14% in INTC shares on Friday. During Monday’s premarket session, the stock extended gains by approximately 6%, reaching $130.13.
A follow-up development emerged shortly after. According to ZDNet Korea, Intel has entered discussions with SK Hynix regarding chip-packaging capabilities to combine high-bandwidth memory with general-purpose processors — a segment where TSMC currently holds market dominance. Both Intel and SK Hynix declined to provide official comments.
Should both partnerships materialize, Intel’s foundry division would transition from having no major external clients to securing two within mere weeks.
Strong Q1 Results Provided Foundation
The Apple partnership announcement didn’t emerge in isolation. Intel had already demonstrated solid operational performance prior to the recent headlines.
First quarter financial results significantly surpassed Wall Street projections. Adjusted earnings per share reached $0.29, dramatically exceeding the consensus estimate of $0.01. Revenue totaled $13.58 billion, comfortably beating analyst expectations of $12.42 billion. The data center division showed particularly strong momentum, with revenue climbing 22% to $5.1 billion, fueled by increased CPU demand for artificial intelligence applications.
During the earnings conference call, CEO Lip-Bu Tan stated: “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% jump in INTC shares during after-hours trading following the results announcement.
Analyst Perspectives
Bank of America responded to the Apple news by increasing its Intel price target from $56 to $96, though maintaining its Underperform rating. The firm recognized that the foundry agreement could generate substantial revenue streams while preserving its overall cautious outlook.
Prior to these developments, Intel’s sole confirmed external foundry partnership was with Terafab — connected to Elon Musk and intended to supply Tesla along with other Musk-affiliated companies — though specifics of that collaboration remain largely undisclosed.
Broader market conditions provided additional support. The S&P 500 climbed 0.84% to finish at 7,398.93 on Friday, while the Nasdaq rose 1.71% to 26,247.08, with both indices achieving new record levels. The worldwide semiconductor industry has accumulated approximately $3.8 trillion in additional market capitalization during the past six weeks.
April’s non-farm payroll data showed 115,000 new jobs, surpassing expectations, with the unemployment rate standing at 4.3%.
