TLDR
- Intel stock rallied 10% Friday and held gains in Monday’s premarket session after Apple deal forecast
- TF International Securities analyst Ming-Chi Kuo expects Intel to ship M processors to Apple by Q2-Q3 2027
- Partnership hinges on Intel’s process design kit launch planned for early 2026
- Apple presently uses TSMC exclusively but Intel deal aligns with domestic manufacturing priorities
- Experts say successful Apple partnership could attract more high-value clients to Intel’s foundry
Intel shares jumped 10% Friday and preserved most gains during Monday’s premarket hours. The rally came after analyst Ming-Chi Kuo from TF International Securities forecast a coming partnership with Apple.
Kuo announced on X that Intel could start delivering its lowest-end M processor to Apple between Q2 and Q3 2027. His recent industry surveys indicate growing confidence that Intel will become an advanced-node supplier to Apple.
Shares dipped 0.59% to $18.23 at 6:26am ET Monday. But the bulk of Friday’s double-digit increase remained.
The deal’s timing depends entirely on Intel’s process design kit. Apple engineers require this technical documentation to create chips. Intel expects to launch the kit in early 2026.
TSMC Holds Dominant Position
Apple sources all its iPhone, iPad and Mac silicon from TSMC currently. The Taiwan-based manufacturer controls Apple’s entire advanced chip production pipeline.
Kuo doesn’t see TSMC losing ground. His analysis suggests Apple will stay “highly dependent” on TSMC’s advanced manufacturing capabilities for years ahead.
The lowest-end M processor represents a small order volume. Kuo stated the Intel contract would cause “virtually no material impact” on TSMC’s business fundamentals or technological edge.
Beyond business considerations, the partnership carries political implications. Kuo highlighted that an Intel deal would show Apple backing the Trump administration’s push for American manufacturing.
Both Intel and Apple declined to comment when contacted by CNBC.
Intel’s Foundry Ambitions
GAM Global Equities investment director Paul Markham views Apple as a game-changing reference customer. “Apple is a potential major reference customer whose presence validates Intel’s high-performance foundry offering,” he explained to CNBC.
Landing Apple could unlock larger opportunities. Markham suggests Intel might secure higher-value projects like iPhone CPU manufacturing. Other major chip designers might follow Apple’s lead.
Intel stock has staged a comeback over 12 months. Shares hit a low of $17.66 in April before mounting a steady recovery.
History Between Tech Giants
Intel and Apple’s relationship spans decades. Intel first announced it would power certain Apple products back in 2005. The partnership ended when Apple transitioned away from Intel processors in the early 2020s.
Legal troubles surfaced last week when TSMC sued Intel. The lawsuit claims a former TSMC senior vice president shared confidential information with Intel. Intel hasn’t addressed the allegations publicly.
The analyst forecast marks a potential watershed moment for Intel’s foundry division. Years of investment in American manufacturing facilities need validation. An Apple contract would provide that proof and likely draw additional customers.
Intel’s 2026 process design kit release will serve as the critical first step. Without this technical foundation, Apple can’t begin chip design work. The kit’s early 2026 launch sets up possible 2027 manufacturing runs.
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