Key Takeaways
- President Trump announced via Truth Social that Apple will partner with Intel to manufacture chips domestically, driving INTC shares up approximately 11%
- No official confirmation has emerged from either Apple or Intel regarding this purported agreement
- The semiconductor sector saw widespread gains — Micron climbed 4.7%, Marvell jumped 5.7%, with Qualcomm and Broadcom each rising 3%
- Intel’s foundry division posted 16% revenue growth to $5.4 billion in Q1 2026, though external clients remain a minority segment
- Over the past twelve months, Intel shares have skyrocketed more than 500%, elevating its market capitalization beyond $670 billion
Intel shares rocketed approximately 11% higher Thursday following a Truth Social announcement from President Donald Trump claiming Apple has committed to collaborating with Intel on domestic chip design and manufacturing.
The rally pushed INTC to $134.12, trading within a daily range of $127.92 to $135.46.
In his social media post, Trump stated: “Apple has agreed to work with Intel to design and build its Chips in America.” He positioned the announcement as another victory in his campaign to reshore semiconductor production, citing previous commitments involving Nvidia and Elon Musk’s proposed Terafab manufacturing facility.
But here’s the catch — there’s been zero confirmation from the companies involved.
Apple refused to provide comment. Intel remained silent. No contract details have surfaced. While a May report suggested preliminary discussions about Intel manufacturing certain Apple-designed semiconductors, even that arrangement was never officially validated.
During the Q1 earnings conference call, Intel CEO Lip-Bu Tan explained the company’s approach: “We have no plan to announce the customer unless the customer wants to announce it.” This policy makes a presidential social media declaration an unconventional channel for breaking foundry partnership news.
The announcement triggered a rally across semiconductor equities. Micron advanced 4.7%, Marvell increased 5.7%, Qualcomm and Broadcom both posted 3% gains, while the VanEck Semiconductor ETF rose 3.2%.
Foundry Expansion Takes Center Stage
Should an Apple partnership materialize, it would represent a transformational development for Intel’s manufacturing-for-hire strategy. The foundry division’s revenue expanded 16% annually to $5.4 billion during Q1 2026. However, third-party customers continue representing only a modest fraction of total production — Intel predominantly utilizes its own fabrication facilities.
Securing Apple as a client would deliver the high-profile validation Intel has pursued. Remember, Apple severed its processor relationship with Intel back in 2020, transitioning Mac computers to internally developed chip architectures. Any fresh collaboration would position Intel purely as a manufacturing contractor — not as a supplier of Intel-designed components for Apple devices.
Industry reports indicate that mature or less sophisticated Apple chips could migrate to Intel facilities, though volume production wouldn’t commence until late 2027. Apple’s cutting-edge processors would continue flowing from TSMC’s foundries.
Intel’s advanced 18A manufacturing technology launched initial production this week, marking what executives characterize as critical progress in foundry capabilities.
Valuation Concerns Emerge
Intel’s operational performance has shown improvement. First-quarter 2026 revenue increased 7% year-over-year to $13.6 billion, while the data center and AI division expanded 22%. The federal government maintains roughly a 10% ownership position, purchased last August for $8.9 billion — a stake currently valued above $50 billion.
Yet the stock’s current pricing raises eyebrows. With market capitalization exceeding $674 billion against approximately $53 billion in trailing twelve-month revenue, INTC commands a price-to-sales ratio above 13 — an elevated multiple for a historically cyclical semiconductor manufacturer.
Shares have exploded more than 500% during the past year. Considerable optimism appears already embedded in the current price — regardless of whether an Apple deal materializes.
Intel’s breakthrough 18A fabrication process commenced initial production runs earlier this week, representing what company leadership described as a pivotal achievement in their manufacturing evolution.
