Quick Summary
- President Trump announced via Truth Social that Apple will partner with Intel to manufacture chips domestically, driving INTC shares up approximately 11%
- No official confirmation has come from either Apple or Intel regarding any partnership agreement
- The semiconductor sector rallied broadly — Micron climbed 4.7%, Marvell gained 5.7%, while Qualcomm and Broadcom each rose 3%
- Intel’s foundry division reported 16% revenue growth to $5.4 billion in Q1 2026, though external clients remain a minor segment
- INTC shares have skyrocketed over 500% in the last twelve months, propelling market capitalization beyond $670 billion
Shares of Intel experienced a substantial rally of approximately 11% on Thursday following a Truth Social announcement from President Donald Trump claiming Apple has committed to collaborating with Intel on domestic chip design and manufacturing.
The announcement pushed INTC to $134.12, trading within a range of $127.92 to $135.46 during the session.
In his post, Trump stated: “Apple has agreed to work with Intel to design and build its Chips in America.” He positioned this announcement as part of his broader initiative to reshore semiconductor production, referencing previous claims about partnerships with Nvidia and Elon Musk’s proposed Terafab manufacturing facility.
But there’s a significant catch — no official verification exists from either company involved.
Apple refused to provide comment. Intel remained silent. Zero details about any agreement have been released publicly. While a May report suggested preliminary discussions about Intel potentially fabricating certain Apple-designed semiconductors, no formal announcement ever materialized.
During the Q1 earnings conference, Intel CEO Lip-Bu Tan explained the company’s approach: “We have no plan to announce the customer unless the customer wants to announce it.” This policy makes a presidential social media post an extraordinarily unconventional channel for breaking foundry partnership news.
The broader semiconductor industry experienced gains following the announcement. Micron shares increased 4.7%, Marvell advanced 5.7%, Qualcomm and Broadcom both appreciated 3%, and the VanEck Semiconductor ETF rose 3.2%.
Spotlight on Intel’s Manufacturing Ambitions
Should an authentic partnership with Apple materialize, it would represent a major victory for Intel’s foundry strategy. The company’s foundry revenue expanded 16% year-over-year reaching $5.4 billion during Q1 2026. However, external customers continue to represent just a fraction of total production — Intel primarily manufactures for its own product lines.
Securing Apple as a client would deliver the high-profile customer Intel has found difficult to capture. Notably, Apple discontinued using Intel processors in Mac computers in 2020, transitioning to proprietary chip architectures. Any fresh collaboration would position Intel purely as a contract fabricator — not a return to Intel-designed components in Apple hardware.
Industry reports indicate potential production of legacy or lower-tier Apple chips at Intel facilities, with manufacturing unlikely before late 2027. Apple’s cutting-edge processors would continue production at TSMC.
Intel’s advanced 18A manufacturing technology reached initial production stages this week, representing what the company describes as progress toward foundry competitiveness.
Evaluating Current Valuation Metrics
Intel’s operational performance has shown improvement. Total revenue increased 7% year-over-year to $13.6 billion in Q1 2026, while its data center and AI division expanded 22%. The federal government maintains approximately 10% ownership, acquired in August for $8.9 billion — a stake currently valued above $50 billion.
Yet the current stock valuation raises eyebrows. With market capitalization exceeding $674 billion against trailing revenue around $53 billion, INTC trades at more than 13 times sales — an elevated multiple for a cyclical semiconductor manufacturer.
Shares have exploded over 500% during the past year. Substantial positive expectations seem already reflected in the price — regardless of whether an Apple partnership exists.
Intel’s next-generation 18A process technology commenced initial production earlier this week, marking what the company characterized as a significant manufacturing milestone.
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