NEW YORK, May 8, 2026, 14:05 EDT
Intel stock jumped Friday, following a Wall Street Journal report that Apple and Intel have struck a preliminary deal for Intel to produce certain chips for Apple devices—a possible win for Intel as it tries to revive its contract manufacturing division. Reuters reported the two firms had discussed terms for over a year, with a formal agreement wrapped up just in the past few months.
Timing is crucial here. Apple’s been pushing to secure more capacity in the crowded advanced processor sector—the same top-tier chips that power its phones, tablets, and computers. Earlier this week, Reuters reported that Apple had entered preliminary discussions with both Intel and Samsung, probing the possibility of producing its main device processors in the U.S. That would give Apple an alternative to Taiwan Semiconductor Manufacturing Co., its main manufacturing partner.
Intel was recently quoted at $125.05, up 14.1%. Apple climbed to $292.32, a gain of about 1.7%. According to Yahoo Finance, Intel’s latest surge puts the stock on pace for its fourth consecutive intraday record, a run fueled by speculation that Apple may step in as a major foundry customer.
A foundry, simply put, handles the manufacturing side—producing chips for clients who design their own semiconductors. That’s key here: this deal, as reported, doesn’t signal Apple is going back to using Intel-designed silicon in Macs. Apple left Intel’s chips behind when it made the switch to Apple Silicon. Still, nothing stops Apple from tapping Intel’s factories to produce chips it has engineered itself.
The Verge flagged ongoing questions about which Apple hardware might actually get Intel chips, saying the details are still hazy. Both Apple and Intel kept quiet when asked for comment, according to the site, which cited a Journal report. Reuters reported Intel wouldn’t comment, and said its own outreach to Apple and the White House hadn’t been answered.
Intel’s report comes as CEO Lip-Bu Tan tries to reshape the company. Back in August, Intel revealed the U.S. government would pump $8.9 billion into its common shares—enough for a 9.9% holding—tied to a nationwide effort to boost chip manufacturing at home. Tan, for his part, called Intel “deeply committed” to bringing advanced tech production to the U.S. Newsroom
Intel managed to pull in significant outside money and catch the eye of major chipmakers. Nvidia committed $5 billion to Intel last year, a move that put it among Intel’s top shareholders. But according to Reuters, that agreement stopped short of having Intel’s foundry manufacture Nvidia’s computing chips. Analysts, as Reuters points out, have maintained that for Intel’s foundry business to seriously compete, it needs to land a heavyweight customer—think Apple, Nvidia, Qualcomm, or Broadcom.
Apple is feeling the heat too. For its fiscal second quarter, the tech giant posted revenue of $111.2 billion—a 17% jump year over year. Chief Executive Tim Cook described it as Apple’s “best March quarter ever.” Robust iPhone sales are putting extra strain on chip supplies, especially now that Apple is ramping up processing power inside its devices. Apple
Cook has conceded the supply issue, too. According to Mobile World Live, Apple’s March-quarter constraints largely came down to a shortage of advanced nodes—newer chipmaking tech that crams greater computing power onto smaller chips. “Flawless execution” is necessary, PP Foresight’s Paolo Pescatore told the publication, pointing to Apple’s supply limits. Mobile World Live
TSMC dominates the high-end chipmaking scene, holding the keys to the industry’s most advanced manufacturing. According to Reuters, the chip giant produces cutting-edge wafers for names like Nvidia, AMD, and Apple. With AI demand jumping, finding spare capacity at TSMC is a challenge. Apple, meanwhile, has kept tabs on Samsung as well—Bloomberg noted that Apple execs toured a Samsung facility under construction in Texas.
The main worry: the deal could end up limited in scope, sluggish, or bogged down by technical snags. Bloomberg previously reported Apple wasn’t sold on moving beyond TSMC, with doubts about reliability and scaling. Intel’s been mulling how best to market its 18A and 14A chipmaking for external clients, but Reuters noted poor yields add strain to margins.
Even so, Apple’s update clearly carried weight with investors—not just another supply-chain headline. The Philadelphia semiconductor index hit a fresh record, fueled by hopes for robust AI infrastructure demand. “There’s a huge secular movement happening in chips,” Allianz Investment Management strategist Charlie Ripley told Reuters. Right now, Intel stands out as a prime way to play that theme. Reuters
