Intel Corporation (INTC) shares surged more than 7% in premarket trading Thursday after President Donald Trump announced that Apple Inc. (AAPL) has agreed to collaborate with Intel on chip design and manufacturing in the United States. The stock hit a record $129.84 before the bell, according to Dow Jones data, driven by optimism that Apple could become a major external client for Intel's foundry business.
Trump made the statement on Truth Social, writing that "Apple has agreed to work with Intel to design and build its Chips in America," as reported by Barron's. However, the announcement lacked specific terms, product volumes, or a timeline, and neither Apple nor Intel has officially confirmed the partnership.
The potential deal would be a significant validation for Intel's contract manufacturing push, which has struggled to gain traction against industry leader Taiwan Semiconductor Manufacturing Co. (TSM). Apple currently relies on TSMC for the chips used in its iPhones, iPads, and Macs. If Intel can secure even a portion of Apple's business, it would represent a major win for its foundry division.
Intel's manufacturing roadmap is a key factor. On June 16, the company announced that its 18A-P process, an enhanced version of its 18A technology, has entered risk production—early output before full-scale manufacturing. Naga Chandrasekaran, general manager for Intel Foundry, acknowledged there is "more work ahead" but expressed confidence in the progress of 18A-P and long-term research.
Analysts at Counterpoint Research suggested that Apple testing its M7 chip on Intel's 18A-P line could be a "turnaround moment" for Intel's foundry ambitions. However, they cautioned that manufacturing yields—the percentage of functional chips per wafer—will be the ultimate test of Intel's ability to match TSMC's track record.
The broader market context is favorable for chip stocks. U.S. stock futures rose early Thursday, with Nasdaq 100 futures up 1.36% at 5:01 a.m. ET. Intel jumped 9.3% premarket following Trump's comment, while other semiconductor names like Nvidia (NVDA), Micron (MU), and Marvell (MRVL) also traded higher.
Apple's motivation for diversifying its supply chain is clear. TSMC's advanced production lines are increasingly occupied with orders from AI chipmakers like Nvidia and AMD (AMD). If Intel can deliver a viable U.S.-based alternative, Apple gains strategic flexibility, even if it does not immediately reduce its dependence on TSMC.
The potential partnership is also tied to Washington's broader semiconductor initiative. In August 2025, Intel announced that the U.S. government would invest $8.9 billion in Intel common stock for a 9.9% stake, using funds from earlier CHIPS Act grants. Intel also committed over $100 billion to expand its U.S. chipmaking capacity.
Despite the market enthusiasm, significant risks remain. The absence of formal confirmation from either company, the lack of a specific product commitment, and the fundamental challenge of achieving high yields on advanced processes mean the deal is far from certain. Investors are betting on Intel's turnaround, but the real test will be in production, on-time delivery, and whether Apple ultimately places substantial device volumes with Intel.
