TLDR
- Apple and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple devices
- Intel stock surged over 14%, hitting a new all-time high above $115
- Intel Q1 2026 revenue came in at $13.6 billion, up 7% year-over-year, with adjusted EPS of $0.29 vs. consensus of $0.01
- The Trump administration played a direct role in brokering the Apple-Intel deal, with Commerce Secretary Howard Lutnick meeting Tim Cook repeatedly
- Intel CEO Lip-Bu Tan said demand is now outpacing supply: “A year ago the conversation was about whether we could survive”
Intel (INTC) stock hit an all-time high on Friday, surging more than 14% as a preliminary chip manufacturing deal with Apple and a blowout earnings report landed at the same time.
APPLE AND INTEL REACH PRELIMINARY CHIP-MAKING AGREEMENT
WSJ reports $AAPL and $INTC have reached a preliminary agreement for Intel to manufacture some chips for Apple devices.
It is still unclear which Apple products Intel would make chips for.
The Trump administration… pic.twitter.com/cHXYUh6G8j
— Wall St Engine (@wallstengine) May 8, 2026
Intel stock touched $115.98 in early trading, later extending gains as the session progressed. The stock was up around 14.87% by midday.
The primary catalyst was a report that Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips used in Apple devices. Intensive talks between the two companies have been going on for more than a year.
It remains unclear which Apple products Intel would make chips for. Apple ships over 200 million iPhones annually, along with millions of iPads and Mac computers. Both companies declined to comment.
The Trump administration was central to making this deal happen. Commerce Secretary Howard Lutnick met repeatedly with Apple CEO Tim Cook over the past year to push the partnership. President Trump personally advocated for Intel to Cook in a meeting at the White House.
“As soon as we went in, Apple went in, Nvidia went in, a lot of smart people went in,” Trump said in January.
The U.S. government converted nearly $9 billion in federal grants into Intel stock last summer, giving it a 10% stake in the company. That backing gave Intel credibility with potential partners.
Intel’s Q1 Earnings Beat Expectations
The Apple news landed on top of a strong earnings result. Intel posted Q1 2026 revenue of $13.6 billion, up 7% year-over-year. Adjusted EPS came in at $0.29 — well above the consensus estimate of just $0.01.
Non-GAAP gross margins hit 41%, beating guidance. CEO Lip-Bu Tan highlighted that demand for Intel’s CPUs and manufacturing capacity is rising as AI applications move closer to end users.
Apple has been under pressure to diversify its chip supply. On its last two earnings calls, Cook cited a lack of advanced chip availability as a reason Apple couldn’t meet iPhone demand. Those constraints are expected to continue into the current quarter, affecting several Mac models.
Apple relies heavily on TSMC, but skyrocketing AI chip demand from Nvidia and others has reduced Apple’s leverage with the Taiwanese manufacturer.
Intel’s Broader Turnaround Push
Intel has been rebuilding fast under Tan, who took over in March 2025. He has reshaped leadership, hired former TSMC executive Wei-Jen Lo, and invested heavily in Intel’s most advanced manufacturing process, known as 14A.
Intel also received regulatory clearance to increase its investment in AI chip developer SambaNova, deepening that collaboration.
Nvidia invested $5 billion in Intel in September, with a deal for Intel to build custom data center CPUs for Nvidia. Elon Musk also announced a plan last month to build a chip plant in Texas with Intel as part of his Terafab project.
Intel now has foundry partnerships with Apple, Nvidia, and SpaceX/Musk — all three companies that Lutnick had been working to bring onboard.
Tan put it plainly on the earnings call: “Today it’s about how quickly we can add manufacturing capacity.”
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