Key Takeaways
- A preliminary manufacturing partnership between Apple and Intel has been established for producing chips destined for Apple products
- Intel shares jumped more than 14%, establishing a fresh all-time peak exceeding $115 per share
- First-quarter 2026 revenue reached $13.6 billion, representing a 7% annual increase, while adjusted earnings per share hit $0.29 against Wall Street’s $0.01 forecast
- The agreement was facilitated through direct involvement from the Trump administration, with Commerce Secretary Howard Lutnick conducting numerous meetings with Tim Cook
- CEO Lip-Bu Tan revealed demand has flipped dramatically: “Twelve months ago, discussions centered on our survival prospects”
Intel (INTC) shares rocketed to unprecedented territory on Friday, climbing over 14% as news of a preliminary manufacturing partnership with Apple coincided with exceptional quarterly financial performance.
Shares of Intel peaked at $115.98 during morning trading hours, with momentum building throughout the day. By midday, the stock had advanced approximately 14.87%.
The main driver behind this explosive move was news that Apple and Intel have struck a preliminary manufacturing arrangement for Intel to produce certain chips for Apple’s product ecosystem. According to sources, intensive negotiations between the technology giants have spanned more than twelve months.
Specific details regarding which Apple product lines would utilize Intel-manufactured chips remain undisclosed. Apple’s annual shipments include over 200 million iPhones alongside millions of iPad tablets and Mac computers. Neither company has provided official commentary.
The Trump administration played an instrumental role in facilitating this partnership. Commerce Secretary Howard Lutnick engaged in multiple discussions with Apple CEO Tim Cook throughout the past year to advance the collaboration. President Trump personally championed Intel’s capabilities to Cook during a White House meeting.
“The moment we entered, Apple followed, Nvidia joined, numerous intelligent players came aboard,” Trump stated in January.
The federal government transformed approximately $9 billion in grants into Intel equity last summer, securing a 10% ownership position. This government endorsement provided Intel with enhanced credibility among prospective collaborators.
First Quarter Financial Performance Surpasses Projections
The Apple partnership announcement complemented robust quarterly results. Intel reported first-quarter 2026 revenue of $13.6 billion, marking a 7% year-over-year improvement. Adjusted earnings per share registered at $0.29 — significantly surpassing the analyst consensus of merely $0.01.
Non-GAAP gross profit margins reached 41%, exceeding company guidance. CEO Lip-Bu Tan emphasized that demand for Intel’s processors and manufacturing capabilities is accelerating as artificial intelligence applications migrate toward end-user devices.
Apple has faced mounting pressure to broaden its semiconductor supply chain. During its previous two quarterly earnings presentations, Cook attributed iPhone supply constraints to limited availability of advanced chip manufacturing capacity. These bottlenecks are anticipated to persist into the present quarter, impacting various Mac product lines.
Apple’s heavy dependence on TSMC has become problematic, as surging AI processor demand from Nvidia and competitors has diminished Apple’s negotiating position with the Taiwanese foundry.
Intel’s Comprehensive Revival Strategy
Intel has undergone 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 manufacturing technology, designated as 14A.
Intel has also secured regulatory approval to expand its stake in AI semiconductor developer SambaNova, strengthening that strategic relationship.
Nvidia committed $5 billion to Intel in September, accompanied by an agreement for Intel to manufacture specialized data center processors for Nvidia. Elon Musk separately announced plans last month to construct a semiconductor facility in Texas with Intel as a partner in his Terafab initiative.
Intel has now established foundry relationships with Apple, Nvidia, and SpaceX/Musk — precisely the three organizations that Lutnick had targeted for partnership.
Tan expressed the situation clearly during the earnings conference call: “The question now is how rapidly we can expand manufacturing capacity.”
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