Key Highlights
- INTC shares jumped approximately 14% on Friday, with an additional ~6% gain in Monday’s premarket session, reaching around $130.13.
- A preliminary chip manufacturing agreement between Apple and Intel has been established, with partial facilitation from the U.S. government.
- Intel has entered discussions with SK Hynix regarding chip-packaging technology, potentially securing a second significant foundry client.
- Following the conversion of $9 billion in grants to equity, the U.S. government now owns approximately 10% of Intel.
- First-quarter results exceeded forecasts significantly — adjusted EPS reached $0.29 versus $0.01 expectations, while revenue totaled $13.58B compared to $12.42B consensus.
Intel has emerged as one of 2026’s most unexpected success stories. The chipmaker’s shares have more than tripled year-to-date, with the most recent rally fueled by consecutive major announcements that have captured investor attention.
According to a Friday report from The Wall Street Journal, Apple and Intel have finalized preliminary terms for Intel to produce processors for Apple’s product lineup. This agreement follows negotiations spanning more than twelve months and received support from the U.S. federal government, which had previously exchanged $9 billion in grants for Intel equity — establishing approximately 10% government ownership in the semiconductor giant.
The announcement propelled INTC shares upward by as much as 14% during Friday’s session. Momentum continued into Monday’s premarket trading, where the stock gained another ~6%, reaching $130.13.
A subsequent development emerged when ZDNet Korea reported that Intel is negotiating with SK Hynix about supplying chip-packaging technology for integrating high-bandwidth memory with general-purpose semiconductors — a market segment where TSMC currently holds a dominant position. Both Intel and SK Hynix declined to comment on the reports.
Should these agreements materialize, Intel’s foundry division would transition from having no significant external clients to securing two major partnerships within weeks.
Strong First Quarter Results Provided Foundation
The Apple partnership announcement didn’t emerge in isolation. Intel had already delivered impressive quarterly performance before these developments became public.
First-quarter financial results substantially exceeded analyst projections. Adjusted earnings per share reached $0.29, dramatically surpassing the consensus estimate of merely $0.01. Revenue totaled $13.58 billion, beating the anticipated $12.42 billion. The data center division led performance metrics, posting 22% revenue growth to $5.1 billion, propelled by CPU demand for AI computing applications.
During the earnings conference call, CEO Lip-Bu Tan stated: “The CPU is reinserting itself as the indispensable foundation of the AI era — this isn’t just our wishful thinking, it’s what we hear from our customers.”
The earnings surprise triggered a 20% surge in INTC shares during after-hours trading following the results announcement.
Analyst Response
Bank of America adjusted its Intel price target upward to $96 from $56 in response to the Apple partnership news, while maintaining an Underperform rating. The firm recognized that the foundry agreement could generate substantial revenue streams, despite maintaining its overall cautious outlook.
Prior to these announcements, Intel’s sole confirmed major external foundry partnership was with Terafab — connected to Elon Musk and intended to support Tesla along with other Musk-affiliated companies — though specific terms of that relationship remain largely undisclosed.
Broader market conditions provided additional support. The S&P 500 climbed 0.84% to 7,398.93 on Friday, while the Nasdaq jumped 1.71% to 26,247.08, with both indices reaching all-time highs. The worldwide semiconductor industry has added approximately $3.8 trillion in market capitalization during the past six weeks.
April’s non-farm payroll report showed 115,000 new jobs, exceeding consensus expectations, with the unemployment rate standing at 4.3%.
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