TLDRs;
- Intel (INTC) stock surged 6.41% after reports of preliminary investment talks with Apple.
- Apple previously dropped Intel chips in 2020 but may reestablish ties through strategic funding.
- Intel has already secured US$7 billion from Nvidia and SoftBank, plus accelerated U.S. government support.
- Despite gains, Intel’s foundry unit is unprofitable, with US$13B in losses over the past year.
Intel Corporation (NASDAQ: INTC) saw its stock climb sharply on Wednesday after reports emerged that the company had entered early-stage talks with Apple Inc. about a potential investment.
The discussions, according to sources familiar with the matter, are part of Intel’s wider effort to attract fresh capital and strategic partners to help revitalize its struggling chipmaking business.
Intel, headquartered in Santa Clara, California, has already secured several high-profile backers this year, including a US$5 billion investment from Nvidia and US$2 billion from SoftBank Group Corp. Apple now appears to be the latest company Intel is courting, though insiders caution that the talks remain preliminary and may not lead to a deal.
Shares of Intel responded positively to the news, closing 6.41% higher at $31.22 on September 24, 2025, with additional after-hours gains.
Why Apple Matters to Intel’s Revival
Apple’s potential involvement is significant given the companies’ complex history. For years, Apple’s Mac computers relied on Intel processors before the tech giant pivoted in 2020 to its own in-house silicon, the M1 and subsequent chips.
A renewed relationship could help Intel gain credibility as it seeks to rebuild its foundry business and expand beyond traditional markets.
Industry observers suggest that Apple, one of the most cash-rich companies in the world, could play a pivotal role in Intel’s restructuring strategy. However, the sources emphasized that no agreement has been finalized, and the talks may not progress.
Intel’s Ongoing Struggles Despite Big Investments
While Intel stock has surged 48% year-to-date in 2025, thanks in large part to deals with Nvidia, SoftBank, and accelerated U.S. government funding, its foundry division continues to face headwinds. The company’s chipmaking arm has posted losses of over US$13 billion on US$18 billion in revenue in the past year, underscoring the urgency behind Intel’s search for new investors.
Intel’s capital spending is projected to hit US$18 billion in 2025, leaving its free cash flow in negative territory. Analysts remain cautious about Intel’s profitability outlook, with consensus forecasts projecting US$640 million in adjusted net income for 2025 and US$3.2 billion in 2026, modest numbers for a company of its scale.
The U.S. government’s role has also complicated Intel’s capital-raising plans. Commerce Secretary Howard Lutnick recently confirmed that Washington would require an equity stake in exchange for CHIPS Act funds, a policy shift away from traditional subsidies. This has raised concerns among private investors about potential equity dilution.
Market Reaction and Investor Sentiment
The market’s immediate reaction to Apple’s possible involvement was overwhelmingly positive. Intel’s sharp 6.4% single-day gain reflects investor hopes that a tie-up with Apple could restore confidence in the chipmaker’s long-term trajectory.
Still, analysts remain divided. Some view Apple’s entry as a potential game-changer that could help Intel attract more customers to its foundry services. Others warn that unless Intel addresses its deep operational inefficiencies, fresh funding may only provide temporary relief.
For now, investors appear optimistic. Intel’s stock momentum in 2025 suggests that the market is willing to reward bold turnaround strategies, even if their success remains uncertain.
