Intel Shares Surge 10% on Potential Apple Partnership for M-Series Chips

• Intel shares rose 10.3% to close at $40.56, marking the strongest finish in over a year amid Apple collaboration rumors.

• The surge follows Ming-Chi Kuo’s note on improved visibility for Intel as an advanced-node supplier to Apple.

• Apple’s potential use of Intel for M-series chips could target 15-20 million units annually for devices like MacBook Air and iPad Pro from 2026 onward.

Discover how Intel’s stock pop from Apple chip rumors could reshape semiconductor manufacturing. Explore the partnership details, market impacts, and investment signals in this in-depth analysis.

What is the Potential Intel Apple Partnership?

The potential Intel Apple partnership involves Apple outsourcing production of its lowest-end M-series chips to Intel’s foundry services, marking a significant shift from Apple’s reliance on TSMC. According to industry surveys by analyst Ming-Chi Kuo, visibility on this collaboration has improved, with Apple already under an NDA and receiving Intel’s 18AP PDK 0.9.1GA. If realized by mid- to late-2027, this deal could revitalize Intel’s manufacturing arm while diversifying Apple’s supply chain.

Intel stock price. Source: Google Finance

How Did Intel’s Stock Surge Happen?

Intel’s stock experienced a sudden 10.3% increase on Friday, closing at $40.56, the highest in over a year, despite earlier trading as low as $20.22 in January and a 60% decline throughout 2024. This rally was triggered by Ming-Chi Kuo, a renowned analyst with extensive Apple supply-chain insights, who noted in a public report that recent industry checks show significantly improved prospects for Intel supplying advanced-node chips to Apple. Kuo’s analysis highlighted Apple’s NDA with Intel and the receipt of the 18AP PDK 0.9.1GA, with the next iteration expected in early 2026.

Under this potential arrangement, Intel could produce Apple’s entry-level M-series chips for high-volume devices such as the MacBook Air and iPad Pro. These products are projected to sell around 20 million units in 2025, with steady demand of 15 to 20 million units expected in 2026 and 2027. Such a partnership would breathe new life into Intel Foundry Services (IFS), helping the company reclaim a competitive edge in advanced semiconductor manufacturing against dominant players like TSMC.

Intel’s recent operational turnaround further supports this optimism. In March 2025, the company appointed Lip-Bu Tan as CEO, leading to aggressive restructuring efforts. This included a 13% workforce reduction quarter-over-quarter, bringing employee numbers to 88,400 by the end of Q3 2025. Despite a $16.6 billion loss the previous year, Intel reported a net income of $4.1 billion in Q3 2025, demonstrating a return to profitability.

Frequently Asked Questions

What Drives the Rumors of an Intel Apple Chip Partnership?

The rumors stem from Ming-Chi Kuo’s industry surveys indicating enhanced visibility for Intel as Apple’s advanced-node supplier. Apple has an active NDA with Intel and has received essential design kits, positioning Intel to potentially start production of low-end M-series chips by 2027 for devices like the MacBook Air, aligning with U.S. domestic manufacturing priorities.

Will This Partnership Benefit Intel’s Foundry Business?

Yes, a deal with Apple would significantly bolster Intel Foundry Services by securing a major client and validating its advanced manufacturing capabilities. This could attract more partners, reduce reliance on unprofitable segments, and help Intel compete with TSMC, especially as it receives substantial U.S. government support through the CHIPS Act for domestic production.

Key Takeaways

• Stock Surge Catalyst: Intel’s 10.3% share increase to $40.56 was directly tied to Ming-Chi Kuo’s positive outlook on the Apple partnership, reversing recent declines.
• Supply Chain Shift: Apple aims to diversify beyond TSMC, potentially using Intel for 15-20 million low-end M-series chips annually starting 2027, reducing geopolitical risks.
• Investment Momentum: Backed by Nvidia’s $5 billion, SoftBank’s $2 billion, and U.S. government’s $8.9 billion stake, Intel’s institutional ownership now exceeds 64.5%, signaling growing confidence.

Intel’s Market Revival

Intel’s path to revival extends beyond the Apple buzz. Earlier in 2025, the company approached Apple for direct investment opportunities, aligning with the Trump administration’s push for “Made in USA” semiconductor production. This move not only supports domestic manufacturing but also mitigates risks from Taiwan’s geopolitical tensions with China, where TSMC is heavily reliant.

A collaboration with Apple would enhance Intel’s credibility in the foundry space, which has faced market doubts about matching TSMC’s scale and technological prowess. Despite these challenges, Intel has garnered significant external support. Nvidia invested $5 billion in Intel’s operations outside the foundry, while SoftBank committed around $2 billion specifically to data center and foundry initiatives.

The U.S. government has converted approximately $8.9 billion from the CHIPS Act into a 10% ownership stake, aimed at accelerating domestic chip production. Institutional interest is also surging: Norway’s Norges Bank Investment Management opened a $1.58 billion position in Intel, acquiring over 70 million shares. Similarly, Polish pension manager PZU elevated its Intel holdings to its third-largest portfolio allocation. Today, institutional investors and hedge funds control about 64.5% of Intel’s shares.

However, skepticism persists on Wall Street regarding Intel’s ability to overtake TSMC in advanced-node technology and production capacity. TSMC remains the industry leader, powering a wide array of high-end chips for global tech giants. For Intel, success with Apple could serve as a pivotal proof-of-concept, attracting further clients and investments to its IFS division.

Analysts like those from Bloomberg Intelligence emphasize that Intel’s restructuring under new leadership, combined with government backing, positions it well for a foundry resurgence. Ming-Chi Kuo’s insights, drawn from deep supply-chain networks, underscore the tangible progress in Apple talks, potentially transforming Intel’s fortunes in the competitive semiconductor landscape.

Conclusion

The Intel Apple partnership rumors have ignited a 10.3% stock surge, highlighting Intel’s strides in foundry services and market revival efforts amid supportive investments and policy alignments. As Intel navigates challenges from rivals like TSMC, this potential collaboration could solidify its role in advanced chip manufacturing. Investors should monitor developments closely, as a confirmed deal by 2027 may drive sustained growth and broader industry shifts toward diversified, domestic supply chains.