Quick Summary
- A preliminary manufacturing agreement between Apple and Intel has been established for Intel to produce chips for Apple products
- Intel shares jumped more than 14%, reaching an unprecedented all-time peak exceeding $115
- First quarter 2026 revenue reached $13.6 billion, representing a 7% increase year-over-year, while adjusted EPS of $0.29 crushed consensus expectations of $0.01
- The deal was facilitated directly by the Trump administration, with Commerce Secretary Howard Lutnick conducting multiple meetings with Tim Cook
- CEO Lip-Bu Tan noted that demand has overtaken supply capacity: “Twelve months ago, the discussion centered on our survival prospects”
Shares of Intel (INTC) reached unprecedented territory on Friday, climbing over 14% following the simultaneous announcement of a preliminary manufacturing partnership with Apple and exceptional quarterly financial results.
Intel shares peaked at $115.98 during morning trading hours, with momentum building throughout the day. By midday, the stock had appreciated approximately 14.87%.
The main driver behind the rally was news that Apple and Intel have achieved a preliminary understanding for Intel to produce certain chips utilized in Apple’s product lineup. Negotiations between the technology giants have been underway for over twelve months.
Specifics regarding which Apple products would incorporate Intel-manufactured chips remain undisclosed. Apple’s annual shipments exceed 200 million iPhones, alongside millions of iPads and Mac systems. Neither organization provided official statements.
The Trump administration played a pivotal role in facilitating this agreement. Commerce Secretary Howard Lutnick conducted numerous meetings with Apple CEO Tim Cook throughout the past year to encourage the collaboration. President Trump directly promoted Intel to Cook during a White House meeting.
“Immediately after we entered, Apple followed, Nvidia followed, numerous intelligent players followed,” Trump stated in January.
Last summer, the federal government transformed approximately $9 billion in grants into Intel equity, securing a 10% ownership position. This governmental support enhanced Intel’s standing with prospective collaborators.
First Quarter Financial Performance Exceeds Projections
The Apple announcement coincided with impressive financial results. 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 surpassing the analyst consensus of merely $0.01.
Non-GAAP gross margins achieved 41%, exceeding company guidance. CEO Lip-Bu Tan emphasized growing demand for Intel’s processors and manufacturing capabilities as artificial intelligence applications shift toward end-user environments.
Apple has faced mounting pressure to broaden its chip supplier base. During its previous two earnings reports, Cook referenced limited advanced chip availability as a constraint on iPhone production capacity. These limitations are anticipated to persist into the ongoing quarter, impacting multiple Mac product lines.
Apple’s heavy dependence on TSMC has become problematic, as surging AI chip demand from Nvidia and competitors has diminished Apple’s negotiating position with the Taiwanese semiconductor manufacturer.
Intel’s Comprehensive Revival Strategy
Intel has executed a rapid transformation under Tan, who assumed leadership in March 2025. He has restructured management teams, recruited former TSMC executive Wei-Jen Lo, and committed substantial resources to Intel’s cutting-edge manufacturing technology, designated as 14A.
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 chip fabrication facility in Texas with Intel as a core partner in his Terafab initiative.
Intel has now established foundry relationships with Apple, Nvidia, and SpaceX/Musk — the three major companies that Lutnick had targeted for partnerships.
Tan articulated the situation clearly during the earnings call: “Now the question is how rapidly we can expand our manufacturing infrastructure.”
