Key Highlights
- A preliminary manufacturing agreement between Apple and Intel positions Intel to produce chips for Apple products
- INTC shares jumped more than 14%, reaching an unprecedented peak above $115
- First-quarter 2026 revenue reached $13.6 billion, representing 7% growth year-over-year, while adjusted EPS of $0.29 crushed the $0.01 consensus forecast
- The Trump administration facilitated negotiations between Apple and Intel, with Commerce Secretary Howard Lutnick conducting multiple meetings with Tim Cook
- CEO Lip-Bu Tan reported that demand has now exceeded supply capacity: “A year ago the conversation was about whether we could survive”
Intel (INTC) reached a record high on Friday, climbing more than 14% as news of a preliminary Apple manufacturing partnership coincided with exceptional quarterly results.
Shares of Intel peaked at $115.98 during early trading hours, with momentum continuing throughout the session. By midday, the stock had gained approximately 14.87%.
The main driver behind this surge was news that Apple and Intel have established a preliminary manufacturing arrangement for Intel to produce certain chips destined for Apple devices. Detailed negotiations between both technology giants have progressed for more than twelve months.
Specific Apple products that would utilize Intel-manufactured chips remain undisclosed. Apple’s annual shipments include over 200 million iPhones, plus millions of iPads and Mac computers. Neither company provided official statements.
The Trump administration played a pivotal role in facilitating this partnership. Commerce Secretary Howard Lutnick held numerous meetings with Apple CEO Tim Cook throughout the past year to encourage the collaboration. President Trump directly promoted Intel to Cook during a White House meeting.
“As soon as we went in, Apple went in, Nvidia went in, a lot of smart people went in,” Trump said in January.
The federal government transformed approximately $9 billion in grants into Intel equity last summer, securing a 10% ownership position in the company. This government support enhanced Intel’s standing with prospective partners.
First Quarter Results Exceed Forecasts
The Apple partnership announcement arrived alongside impressive financial results. Intel delivered Q1 2026 revenue of $13.6 billion, marking 7% year-over-year growth. Adjusted EPS reached $0.29 — significantly surpassing the consensus projection of $0.01.
Non-GAAP gross margins achieved 41%, exceeding guidance targets. CEO Lip-Bu Tan emphasized growing demand for Intel’s CPUs and manufacturing services as artificial intelligence applications migrate toward end users.
Apple has faced mounting pressure to expand its chip supplier network. During its previous two earnings presentations, Cook attributed iPhone supply shortages to limited advanced chip availability. These constraints are projected to persist into the present quarter, impacting multiple Mac product lines.
Apple currently depends predominantly on TSMC, though surging AI chip requirements from Nvidia and competitors have diminished Apple’s negotiating power with the Taiwanese chipmaker.
Intel’s Comprehensive Revival Strategy
Intel has executed a rapid transformation under Tan, who assumed leadership in March 2025. He has restructured executive teams, recruited former TSMC executive Wei-Jen Lo, and committed substantial resources to Intel’s cutting-edge manufacturing process, designated as 14A.
Intel also secured regulatory approval to expand its stake in AI chip developer SambaNova, strengthening that strategic relationship.
Nvidia committed $5 billion to Intel in September, including an agreement for Intel to manufacture custom data center CPUs for Nvidia. Elon Musk revealed plans last month to establish a chip manufacturing facility in Texas with Intel as part of his Terafab initiative.
Intel has now secured foundry agreements with Apple, Nvidia, and SpaceX/Musk — all three organizations that Lutnick had been pursuing.
Tan stated clearly on the earnings call: “Today it’s about how quickly we can add manufacturing capacity.”
