Apple Inc. and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple devices. The deal provides a foundational customer for Intel’s nascent foundry business and reportedly fueled a 15% rally for Intel stock. While specific product details and financial terms are undisclosed, prior reports indicated Intel might initially make chips for Apple’s M series, which power Macs, some iPads, and the Apple Vision Pro.
Apple Inc. and Intel have reached an agreement for Intel to make chips in Apple devices. The deal provides Intel with a foundational customer for its nascent foundry business and could provide the chipmaker with the financial resources to continue investing in new semiconductor technologies.
Reporting on the agreement helped fuel a 15% rally for INTC stock, while AAPL is also up a modest 2%. INTC is already up over 240% year-to-date, one of the best performers among chip stocks on Wall Street.
The iPhone maker has had a long-time reliance on chips from Taiwan Semiconductor Manufacturing. However, Intel has made its way up the hierarchy of semiconductor technology, and Apple is looking to interweave with the resurgent chipmaker.
It’s still unclear which Apple products Intel would make chips for as part of the deal. Apple ships more than 200 million iPhones per year, as well as millions of iPads and Mac computers.
Neither Intel nor Apple immediately commented on the reported deal or provided any specific dollar figures for it. Prior reports had indicated that Intel might initially make chips for Apple’s M series, which power the company’s desktop and laptop computers, some high-end iPads, and its Apple Vision Pro headset.
There is also speculation that Apple would use Intel chips in established technology rather than its newest models. Intel’s most recent rally isn’t fluff, as its recent numbers suggest this is not a one-off surge.
As the AI wave continues to dominate in tech and CPUs become increasingly valuable, Intel is at the forefront of that demand. Further, Wall Street appears convinced the tide may be turning, with Intel’s latest 18A chips showing real promise as they churn out of the company’s new Arizona plant.
