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Intel stock soars on reported Apple deal as turnaround continues to pay off
Yahoo Finance • • business
Key Points:
- Intel's stock surged 10% after President Trump announced on Truth Social that Apple has agreed to collaborate with Intel to manufacture its processors, though Intel has not commented on the claim.
- The partnership is expected to focus on producing low-volume, less critical components initially, with Intel needing to prove its capabilities before securing more significant contracts.
- Intel is expanding its foundry business by securing chip production deals with major companies like Google and potentially Nvidia, as part of a broader turnaround strategy initiated under former CEO Pat Gelsinger and continued by current CEO Lip-Bu Tan.
- The chipmaker benefits from the rising demand for CPUs driven by the AI boom and capacity constraints at TSMC, prompting fabless companies to seek alternative manufacturing partners like Intel.
- Intel's stock has soared over 250% this year and 500% in the past year, fueled by its strategic moves in AI-related CPU demand and growing foundry services.
