NEW YORK, May 11, 2026, 04:07 (EDT)
- Bank of America lifted its Intel price target sharply, bumping it up to $96 from the previous $56, but left its Underperform rating untouched.
- Intel jumped 14% Friday after news broke of a preliminary chip-making deal with Apple.
- Intel Foundry jumped back into the U.S. chip-supply spotlight after the trade.
Bank of America raised its price target on Intel Corp. sharply, moving it up to $96 from $56, but kept its Underperform rating in place. Analysts flagged the possibility of Intel collaborating on chipmaking with Apple Inc.—though they caution that the stock’s rally has already priced in much of that upside. Their math: if Intel lands roughly 25% of Apple’s chip orders, the resulting foundry revenue could total $10 billion a year by 2030.
Intel surged 14% Friday to close at $124.92, setting a new all-time high, according to Investing.com. The stock is now up nearly 240% this year—a stark turnaround for a chipmaker that’s spent years trailing its competitors and trying to prove it can compete among the leaders in advanced chip manufacturing.
This matters right now because Apple is the sort of marquee customer Intel’s foundry business has been targeting—big names that hand off chip production. Landing Apple brings steady orders and burnishes Intel’s reputation, especially as the U.S. government ramps up calls for greater domestic chip output.
After more than a year at the table, Apple and Intel have sketched out an initial agreement on chip manufacturing, The Wall Street Journal said Friday. When reached by Reuters, neither company offered a statement.
Vivek Arya and his team at BofA point to Apple’s M-Series chips—the ones found in MacBooks and iPads—as the probable starting point. The analysts also noted there’s a chance the move could extend to A-Series processors for iPhones down the line. For now, talks are “likely still ongoing,” according to their note. They also drew a line between these discussions and earlier Intel comments about producing Arm-based chips for third parties. Investing.com South Africa
Apple’s core issue is supply. It relies heavily on Taiwan Semiconductor Manufacturing Co., now facing a flood of AI chip requests from Nvidia and AMD. CEO Tim Cook, speaking on the company’s most recent earnings call, pointed to iPhone sales feeling the squeeze because of hiccups at a contract manufacturer, Reuters reported.
Intel is pushing to frame its turnaround as something bigger than a bet on market cycles. In April, the company reported first-quarter revenue of $13.6 billion, up 7% from a year earlier. Data-center and AI brought in $5.1 billion, a 22% increase. Intel Foundry’s revenue reached $5.4 billion, gaining 16%.
Chief Executive Lip-Bu Tan flagged a steep jump in AI-driven demand, saying it’s “significantly increasing the need” for Intel CPUs, wafers, and advanced packaging. Chief Financial Officer David Zinsner said the company is trying to expand available supply through its factory network. Intel Corporation
No clarity yet on timing. BofA hasn’t factored the Apple deal into its model, pointing to hazy terms and cautioning it could drag on—think two to three years just to hit spending goals, pass qualification, and ramp production. Initial foundry margins are likely to feel pressure, the bank notes, squeezed by depreciation, low yields, and typical startup costs.
Apple’s reported deal with Intel stands out—a milestone after their history of separation, but not without complications for Intel. Apple walked away from Intel’s chips years ago; now, the prospect of their reunion is getting noticed. Still, investors aren’t settling for headlines alone. The real test: whether Apple’s business brings consistent orders, better yields, and meaningful profit to Intel.
