Key Takeaways
- Shares of Intel jumped approximately 14% on Friday, with an additional 6% gain in Monday premarket trading, reaching $130.13.
- A preliminary manufacturing agreement between Apple and Intel was reached, with assistance from U.S. government officials.
- Reports indicate Intel is negotiating with SK Hynix regarding chip-packaging solutions, which could bring a second major foundry client.
- The U.S. government owns approximately 10% of Intel after exchanging $9 billion in grants for equity.
- First-quarter results exceeded forecasts significantly — adjusted EPS reached $0.29 compared to $0.01 projections, while revenue totaled $13.58B versus $12.42B estimates.
Intel has emerged as one of 2026’s most compelling corporate turnaround stories. The stock has multiplied more than threefold year-to-date, with the most recent rally fueled by consecutive major announcements.
The Wall Street Journal broke the news on Friday that Apple and Intel finalized preliminary terms for Intel to produce processors destined for Apple products. The arrangement followed negotiations spanning over twelve months and received support from U.S. federal authorities, who earlier converted $9 billion in grants into equity ownership — establishing a roughly 10% government stake in Intel.
The announcement propelled INTC upward by as much as 14% during Friday’s session. Come Monday’s premarket hours, shares added approximately 6% more, hitting $130.13.
A second development emerged shortly after. ZDNet Korea disclosed that Intel has entered discussions with SK Hynix concerning chip-packaging capabilities to combine high-bandwidth memory with general-purpose semiconductors — territory where TSMC currently leads. Both Intel and SK Hynix declined to comment on the matter.
Should these agreements materialize, Intel’s foundry division would transition from having no significant external clients to securing two within weeks.
First-Quarter Results Provided Momentum
The Apple announcement didn’t emerge from a vacuum. Intel had already delivered impressive quarterly performance before the news cycle intensified.
First-quarter financial results significantly exceeded Wall Street projections. Adjusted earnings per share reached $0.29 versus analyst expectations of merely $0.01. Revenue climbed to $13.58 billion, surpassing the $12.42 billion consensus. The data center division particularly excelled, posting revenue growth of 22% to reach $5.1 billion, powered by CPU demand for AI computing applications.
CEO Lip-Bu Tan stated during the earnings conference: “The CPU is reinserting itself as the indispensable foundation of the AI era — this isn’t just our wishful thinking, it’s what we hear from our customers.”
The earnings surprise triggered a 20% surge in after-hours trading when results became public.
Analyst Response
Bank of America elevated its price target on Intel to $96 from $56 following the Apple disclosure, while maintaining an Underperform rating. The firm recognized the foundry agreement could generate substantial revenue, despite retaining its cautious overall outlook.
Prior to these announcements, Intel’s only confirmed significant external foundry partnership involved Terafab — connected to Elon Musk and intended to support Tesla along with other Musk ventures — though specifics of that relationship remain vague.
Broader market conditions also provided tailwinds. The S&P 500 rose 0.84% to close at 7,398.93 on Friday, while the Nasdaq climbed 1.71% to 26,247.08, with both indexes achieving record peaks. The worldwide semiconductor industry has accumulated approximately $3.8 trillion in market capitalization during the past six weeks.
April employment data showed 115,000 non-farm payroll additions, exceeding projections, with the unemployment rate standing at 4.3%.
