Key Takeaways
- Shares of Intel experienced a 7–8% surge on Thursday following President Trump’s Truth Social announcement that Apple has committed to partnering with Intel for domestic chip design and production.
- Complete details of the partnership remain undisclosed, with neither Intel nor Apple officially verifying the agreement.
- Wedbush Securities analysts characterized a potential finalized partnership as a “genuine endorsement” of Intel’s foundry operations, though they note the agreement appears to be in early stages.
- Industry experts anticipate any Apple manufacturing at Intel facilities would focus on mature-node or less advanced semiconductors rather than cutting-edge application processors, which continue to be sourced from TSMC.
- Over the previous 12-month period, Intel stock has experienced a remarkable 464% increase, elevating the company’s market capitalization to $608.7 billion.
Shares of Intel (INTC) experienced a notable uptick of approximately 7–8% during Thursday’s morning session following President Donald Trump’s Truth Social declaration that Apple had committed to collaborating with Intel for the design and production of semiconductors within the United States.
In his straightforward statement, Trump declared: “Apple has agreed to work with Intel to design and build its Chips in America.” He positioned the announcement as a component of a wider initiative to restore semiconductor manufacturing capacity to American shores.
Intel shares were trading approximately $8.86 higher, reaching around $129.96 during early Thursday market activity. Apple experienced a modest premarket gain of roughly 1.3%.
Trump’s statement also made reference to Nvidia and Elon Musk’s Terafab initiative, outlining multiple domestic semiconductor commitments he credited to his administration’s efforts.
“I decided to help Intel because we need to design and build our Chips right here in America,” Trump stated in his post.
The Terafab initiative, which Trump characterized as “the largest Chip Factory in the World,” represents what would become Intel’s foundry division’s first significant external commitment, having previously manufactured exclusively for internal use.
No official confirmation has been released by either Intel or Apple regarding the purported agreement. CNBC reported reaching out to both corporations and the White House seeking additional information.
Industry Expert Commentary
Analysts at Wedbush Securities suggested that a confirmed partnership would represent a significant victory for Intel’s transformation efforts under CEO Lip-Bu Tan, describing it as a “genuine endorsement” of the company’s foundry objectives. Securing Apple along with Nvidia and government-supported initiatives would substantially elevate Intel’s standing as a third-party semiconductor manufacturer.
However, Wedbush emphasized that specifics remain limited. Trump’s remarks seem to characterize an early-stage arrangement lacking comprehensive documentation.
The analysts further anticipate that any semiconductors Apple manufactures via Intel would likely be mature-process or lower-complexity chips — not the sophisticated application processors driving iPhones and Mac computers. Those advanced components are anticipated to continue coming from TSMC.
Wedbush reaffirmed its Outperform rating on Apple stock with a $400 price objective. Apple shares were recently trading near $299.
Intel’s Transformation Journey Under Lip-Bu Tan
Tan assumed the CEO position in early 2024 and has focused on restoring market confidence following extended periods of manufacturing challenges and competitive losses to industry rivals.
Intel substantially missed participating in the early artificial intelligence boom. However, a succession of prominent announcements — including Nvidia’s commitment to utilize Intel’s foundry services — has altered market perception.
The stock has appreciated 464% throughout the past year, driving Intel’s market valuation to $608.7 billion.
The semiconductor sector overall has experienced strong momentum. The PHLX Semiconductor Sector Index, measuring the 30 largest U.S.-listed chip manufacturers, has advanced 90% year-to-date.
Wedbush observed that the Apple arrangement, should it be finalized, would support Apple’s efforts to diversify its supply chain and decrease dependence on TSMC amid expanding semiconductor demand.
Trump’s post indicated the Apple-Intel collaboration followed his role in securing Nvidia’s participation. “First, we helped bring in Nvidia, and they agreed to build their first level Chips with Intel,” he stated.
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