Intel (INTC) Stock: Apple Partnership Could Reshape Chip Manufacturing Race

TLDR

Table of Contents

KeyBanc upgraded Intel and AMD to Overweight as 2026 server CPU supply nearly depleted
Intel mulls 10-15% server CPU price increase due to AI infrastructure spending boom
AMD server CPU revenue forecast to jump 50% with pricing power matching Intel
Intel foundry yields top 60% on 18A process, Apple signed as customer for 2027
AMD MI355 and MI455 GPUs projected to generate $14-15 billion in AI revenue

Intel and AMD caught Wall Street’s attention Monday morning. KeyBanc analyst John Vinh upgraded both chipmakers to Overweight ratings.

Intel Corporation, INTC

The catalyst? Server CPU inventory is vanishing fast. AI infrastructure spending has created a supply crunch that’s reshaping the entire chip sector.

Intel’s situation is particularly tight. The company has nearly exhausted its server CPU allocation for the entire year. Industry checks suggest inventory is essentially spoken for through December.

That kind of demand creates options. Intel is now considering a 10-15% jump in average selling prices for server processors.

Price increases of this magnitude are rare in semiconductors. Normally, chip prices decline over time as manufacturing improves and competition heats up.

Vinh slapped a $60 price target on Intel shares. That’s one of the most optimistic calls currently tracked by Wall Street analysts.

Intel stock rose 3.6% to $45.65 in premarket trading Monday.

Manufacturing Momentum Builds

Intel’s chip foundry business is showing real progress. The 18A manufacturing process now delivers yields above 60%.

Those numbers won’t threaten Taiwan Semiconductor Manufacturing’s dominance. But they could push Intel past Samsung into the number two position for advanced chip production.

Apple has reportedly joined Intel’s customer roster. The tech giant plans to use Intel foundries for lower-end MacBook and iPad processors starting in 2027.

Early talks are also happening around Intel’s next-generation 14A process. Those discussions center on potential iPhone processor production beginning in 2029.

The Apple relationship validates Intel’s foundry strategy. For years, the company only manufactured chips for its own products.

AMD Capitalizes on Server Demand

AMD received similar treatment from KeyBanc. Vinh set a $270 price target on the stock.

AMD shares gained 1.5% to $210.88 in premarket trading. Server CPU revenue should climb at least 50% in 2026, according to the analyst’s research.

AMD plans to implement price increases comparable to Intel’s. Strong demand gives both companies unusual pricing leverage.

AI accelerators represent AMD’s biggest opportunity. The MI355 and MI455 GPU lineup is ramping production quickly.

KeyBanc projects 200,000 MI355 shipments in the first half of 2026. The MI455 will scale up sharply in the second half.

AMD has allocated 290,000 to 300,000 MI455 chips for its Helios rack-scale platform. The system competes directly with Nvidia’s integrated AI solutions.

Combined AI revenue should reach $14-15 billion for the full year. That figure includes both GPU sales and associated software revenue.

Hyperscale cloud providers are fueling the spending surge. Companies like Microsoft, Amazon, and Google are racing to build AI computing capacity.

Both Intel and AMD stand to benefit from this buildout. Supply constraints may persist through year-end as demand continues accelerating.