Intel completed one of the most dramatic weekly rallies in semiconductor history, surging approximately 27% between May 9 and May 15 after the Wall Street Journal reported that Apple reached a preliminary agreement to manufacture chips using Intel foundries. The Intel Apple chip deal sent INTC shares to fresh all-time highs above $130, breaking a 26-year record and cementing the company's transformation from a struggling chipmaker into a foundry powerhouse. The stock is now up more than 240% year-to-date.
The deal, if finalized, would mark the most significant validation of Intel's foundry ambitions since CEO Lip-Bu Tan took the helm. Apple currently relies entirely on Taiwan Semiconductor Manufacturing Company (TSMC) for its chip production, and any shift -- even partial -- represents a potential $10 billion-plus annual revenue opportunity for Intel Foundry Services. President Trump personally lobbied Apple CEO Tim Cook for the deal, underscoring the strategic importance of domestic chip manufacturing.
What happened
The rally began in earnest on May 5, when Bloomberg first reported that Apple was in talks with Intel about using its foundries. INTC jumped 13% that day alone, hitting a new all-time high. On May 8, the Wall Street Journal confirmed that a preliminary agreement had been reached for Intel to manufacture certain chips for Apple devices using its advanced 18A process technology. The stock posted back-to-back sessions of 10%+ gains on May 8 and 9, reaching $130.57 intraday before settling near $126.
The week saw Intel add roughly $50 billion in market capitalization. Institutional buying was heavy, with options activity showing a massive skew toward calls. By May 11, INTC had closed at $129.44 -- more than 55% above the Wall Street consensus price target of around $84, according to TIKR data. Analysts scrambled to revise their models upward, with several banks issuing mid-week target increases.
The broader context makes this rally even more remarkable. Intel was trading below $20 per share as recently as September 2024, before a series of catalysts -- including CHIPS Act funding, a U.S. government equity stake of nearly 10%, the SambaNova partnership, and now the Apple deal -- transformed market perception. The company's 18A process node, which promises competitive performance with TSMC's most advanced offerings, has gone from skepticism to validation in just six months. CFO David Zinsner has guided for Intel Foundry to reach profitability by 2027, and an Apple contract at any scale would dramatically accelerate that timeline.