Key Takeaways
- A tentative manufacturing partnership between Apple and Intel has been established for producing chips used in Apple products
- Shares of Intel skyrocketed more than 14%, reaching an unprecedented peak exceeding $115
- First quarter 2026 revenues reached $13.6 billion, marking a 7% annual increase, while adjusted earnings per share hit $0.29 against analyst expectations of $0.01
- The current administration facilitated negotiations between the tech giants, with Commerce Secretary Howard Lutnick conducting multiple meetings with Tim Cook
- CEO Lip-Bu Tan noted a dramatic shift: “Twelve months ago, questions centered on our viability as a company”
Shares of Intel (INTC) reached unprecedented territory on Friday, climbing more than 14% following the simultaneous announcement of a tentative manufacturing partnership with Apple and impressive quarterly financial results.
The chipmaker’s shares peaked at $115.98 during morning trading hours, with momentum continuing throughout the day. By midday, the stock had appreciated approximately 14.87%.
The main driver behind this surge was news that Apple and Intel have struck a tentative deal for Intel to produce certain semiconductor components for Apple’s product lineup. According to reports, the two technology giants have been engaged in serious negotiations for over twelve months.
Specific details regarding which Apple product lines would utilize Intel-manufactured chips remain undisclosed. Apple’s annual shipments exceed 200 million iPhones, complemented by substantial volumes of iPads and Mac computers. Representatives from both corporations refused to provide official statements.
Government involvement proved crucial in facilitating this partnership. Commerce Secretary Howard Lutnick conducted numerous meetings with Apple’s CEO Tim Cook throughout the previous year to encourage the collaboration. President Trump personally lobbied Cook during a White House gathering to consider Intel as a manufacturing partner.
“Immediately after our involvement, Apple committed, Nvidia committed, numerous sophisticated players committed,” Trump stated in January.
Last summer, the federal government transformed approximately $9 billion in grants into equity ownership, securing a 10% position in Intel. This government backing enhanced Intel’s credibility among prospective collaborators.
Strong First Quarter Performance
The Apple partnership announcement coincided with impressive quarterly results. Intel reported first quarter 2026 revenues of $13.6 billion, representing a 7% year-over-year growth. Adjusted earnings per share reached $0.29 — significantly surpassing the analyst consensus forecast of merely $0.01.
Non-GAAP gross profit margins achieved 41%, exceeding projected guidance. CEO Lip-Bu Tan emphasized growing demand for Intel’s processors and fabrication services as artificial intelligence applications increasingly move toward consumer-facing implementations.
Apple has faced mounting pressure to reduce supply chain concentration. During its previous two quarterly earnings presentations, Cook identified limited access to advanced semiconductor manufacturing as a constraint on iPhone production capacity. These supply challenges are anticipated to persist through the current quarter, impacting various Mac product lines.
Apple’s heavy dependence on TSMC has become problematic as surging demand for AI processors from Nvidia and competitors has diminished Apple’s negotiating position with the Taiwan-based foundry.
Comprehensive Recovery Strategy
Intel has executed a rapid transformation under Tan’s leadership since he assumed control in March 2025. He has restructured the executive team, recruited former TSMC executive Wei-Jen Lo, and committed substantial resources to Intel’s cutting-edge 14A manufacturing technology.
Intel also secured regulatory approval to expand its stake in artificial intelligence chip developer SambaNova, strengthening that strategic relationship.
Nvidia committed $5 billion to Intel last September, accompanied by an agreement for Intel to manufacture specialized data center processors for Nvidia. Additionally, Elon Musk revealed plans last month to construct a semiconductor facility in Texas with Intel as a key partner in his Terafab initiative.
Intel has successfully established foundry relationships with Apple, Nvidia, and SpaceX/Musk — precisely the three organizations Lutnick had prioritized for partnership development.
Tan expressed the company’s position clearly during the earnings discussion: “The current challenge involves expanding our manufacturing capabilities as rapidly as possible.”
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