A Phoenix Rises? Intel Stock Jumps on Major Apple Chip Rumors
The tech world loves a good comeback story, and the latest chapter is unfolding on Wall Street as Intel finds itself back in the headlines alongside its old rival, Apple. Shares of the American chip giant surged more than 7% after a flurry of reports suggested a renewed partnership with the Cupertino-based tech behemoth. For a company that was all but abandoned by Apple just a few years ago, this news is more than just a stock bump—it’s a massive symbolic victory.
The core of the excitement isn’t about Apple reverting to Intel’s old processors, which it phased out to great fanfare in favor of its own custom silicon. This time, the deal is all about manufacturing. Reputable supply chain analysts are now reporting that Apple is in discussions for Intel to become a foundry supplier for its own custom-designed, Arm-based chips, specifically the lower-end of the vaunted M-series processors that power the MacBook and iPad lines.
The initial speculation, which sent Intel’s stock soaring more than 10% on its biggest trading day, is focused on Intel’s cutting-edge fabrication process known as 18A. This process is expected to be one of the earliest sub-2 nanometer advanced nodes manufactured in North America. If the partnership comes to fruition, Intel could start shipping these entry-level M-series chips as early as the second or third quarter of 2027, potentially supplying them for future MacBook Air, iPad Air, and iPad Pro models.
So, why would Apple go back to Intel for manufacturing after such a high-profile split? It comes down to two simple but powerful strategic drivers: diversification and geopolitics. Currently, Taiwan Semiconductor Manufacturing Company, or TSMC, handles the vast majority of Apple’s advanced chip production. While TSMC is a technological marvel, relying on a single major supplier—especially one in a geographically sensitive region—carries inherent risk. Bringing Intel on board provides Apple with a crucial domestic manufacturing option and a significant hedge against potential supply chain disruptions.
For Intel, a company executing an ambitious turnaround strategy, this is the validation their new Intel Foundry Services (IFS) business has been waiting for. Landing a customer of Apple’s caliber, even if it’s only for entry-level chips, would be a clear signal to the rest of the industry that Intel’s domestic-focused manufacturing capabilities are ready for prime time. The move would not only solidify its standing as a key player in American-made chips but also inject fresh optimism into its stock, which has already been on a strong run this year, fueled by broader AI enthusiasm and strategic investments.
Of course, this is still the early phase of a potential agreement. Analysts caution that while the deal is symbolically huge, TSMC will remain the dominant supplier for Apple’s higher-performance chips for the foreseeable future, meaning the immediate revenue impact for Intel will be modest. Still, the market is reacting to the promise. For a company determined to regain its manufacturing edge, getting the stamp of approval from the most valuable tech company in the world is a sign that its efforts to reshape the global chip landscape are finally gaining traction.