Intel (INTC) Stock Soars to Record High on Apple Manufacturing Partnership

Key Takeaways

• A tentative manufacturing partnership between Apple and Intel has been established for producing chips destined for Apple products
• Shares of Intel jumped more than 14%, establishing a fresh all-time high exceeding $115
• First quarter 2026 revenue for Intel reached $13.6 billion, representing a 7% year-over-year increase, with adjusted EPS of $0.29 crushing the $0.01 consensus forecast
• The current administration, through Commerce Secretary Howard Lutnick, actively facilitated negotiations between Apple and Intel through multiple meetings with Tim Cook
• CEO Lip-Bu Tan revealed that demand has now exceeded supply capacity: “A year ago the conversation was about whether we could survive”

Shares of Intel (INTC) reached unprecedented levels on Friday, climbing over 14% as news of a tentative chip production agreement with Apple coincided with stellar quarterly earnings.

The stock peaked at $115.98 during morning trading hours, with momentum building throughout the day. By midday, Intel shares were trading approximately 14.87% higher.

Intel Corporation, INTC

The main driver behind the rally was news that Apple and Intel have established a preliminary manufacturing partnership for Intel to produce certain chips destined for Apple’s product lineup. Negotiations between the tech giants have been ongoing for over twelve months.

Specifics regarding which Apple product lines would receive Intel-manufactured chips remain undisclosed. Apple’s annual shipments exceed 200 million iPhones, complemented by millions of iPads and Mac computers. Neither company provided official statements.

The current administration played a pivotal role in facilitating this partnership. 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.

Last summer, the federal government transformed approximately $9 billion in grants into equity, securing a 10% ownership position in Intel. This government backing enhanced Intel’s standing with prospective partners.

Strong Q1 Performance Exceeds Forecasts

The Apple partnership announcement arrived alongside impressive quarterly results. Intel reported first quarter 2026 revenue of $13.6 billion, marking a 7% year-over-year gain. Adjusted earnings per share reached $0.29 — dramatically surpassing the consensus projection of merely $0.01.

Non-GAAP gross margins achieved 41%, exceeding company guidance. CEO Lip-Bu Tan emphasized increasing demand for Intel’s processors and manufacturing services as artificial intelligence applications migrate toward consumer devices.

Apple has faced mounting pressure to expand its chip sourcing options. During recent earnings presentations, Cook attributed iPhone supply constraints to limited advanced chip availability. These bottlenecks are anticipated to persist in the ongoing quarter, impacting various Mac product lines.

Apple’s current heavy dependence on TSMC has become problematic, as surging AI chip orders from Nvidia and competitors have diminished Apple’s negotiating power with the Taiwan-based chipmaker.

Intel’s Comprehensive Revival Strategy

Intel has undergone rapid transformation under Tan’s leadership since his March 2025 appointment. He has restructured executive teams, recruited former TSMC executive Wei-Jen Lo, and committed substantial resources to Intel’s cutting-edge 14A manufacturing process.

Intel also obtained regulatory approval to expand its stake in AI chip company 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 participating in his Terafab initiative.

Intel has now secured foundry agreements with Apple, Nvidia, and SpaceX/Musk — representing all three major companies Lutnick had prioritized for partnerships.

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