Shares in Intel (INTC) stock are roaring on Tuesday, after reports emerged of Apple Inc (AAPL) exploring a deal for the chipmaker’s main processors. INTC is up over 60% YTD, one of the best performers among chip stocks on Wall Street, even outperforming NVDA. The stock’s current price of $109 is an ATH.
According to Bloomberg, Apple is in talks with both Intel and Samsung to produce the main processors for its devices in the U.S. The iPhone maker has had a long-time reliance on chips from Taiwan Semiconductor Manufacturing (TSM). Apple and Intel have held “early-stage talks” about a potential partnership, Bloomberg reported, citing sources familiar with the matter. Apple executives have also visited a Samsung plant in Texas, which is still under construction but will eventually produce chips.
Sources told Bloomberg that Apple has not yet placed any orders with Intel or Samsung and said it may still decide to stick solely with TSMC. AAPL stock is also up on Tuesday.
Intel’s most recent rally isn’t fluff, as its recent numbers suggest this is not a one-off surge, but rather the opening chapter of a multiyear rally. As the AI wave continues to dominate in tech and CPUs become increasingly valuable, Intel is at the forefront of that demand. Further, Wall Street appears convinced the tide may be turning, with Intel’s latest 18A chips showing real promise as they churn out of the company’s new Arizona plant.
At the same time, agentic AI is spinning up a major resurgence in demand for Intel’s core product, the central processing unit. Bank of America predicts the CPU market could more than double by 2030, and Nvidia told CNBC in March that “CPUs are becoming the bottleneck” for AI. “The CPU is reinserting itself as the indispensable foundation of the AI era,” Intel CEO Lip-Bu Tan said on the company’s earnings call last week, adding that demand for its data center CPU exceeds supply.
Source: Watcher Guru
