Intel (INTC) stock soared on Tuesday after reports that the semiconductor maker will supply chips to Apple. The report was released by Wall Street analysts on Friday and gained momentum Monday afternoon into Tuesday morning. INTC stock previously faced resistance at the $40 level, but rose more than 8% to $43 on Tuesday.
Ming-Chi Kuo, an analyst at TF International Securities, posted on X last week that he expects Intel to start shipping its lowest-end M processors to Apple as early as the second or third quarter of 2027. He said the latest industry research shows that “Intel’s prospects for becoming an advanced node supplier to Apple have recently improved significantly.” Additionally, Kuo points out that Apple plans to use Intel’s upcoming 18A-P process technology for the chip, which is expected to improve performance compared to current 18A technology.
Apple previously used Intel chips in its laptops and desktops before switching to its own chip design manufactured by TSMC. The new chip will continue to use Apple’s design, but with Intel’s processing technology.
How Intel and Apple’s partnership could boost INTC stock’s growth
This rumor has not yet been confirmed by Apple Inc. or Intel. However, the news triggered solid gains in both stocks, with AAPL also up 3.7% over the past five days. Despite the recent rally, analysts remain mixed on the future of Intel (INTC) stock, with many predicting further declines. Loop Capital and Rosenblatt have a target of $25, while JPMorgan has a target of $30 and B of A Securities has a target of $34.
Meanwhile, Paul Markham, investment director at GAM Global Equities, agrees with Kuo on the optimistic outlook for INTC stock. “Apple is a potential key reference customer, and its presence validates Intel’s high-performance foundry products,” he said in an interview with CNBC. “If Intel can pull it off, it could gain more volume and value of business from Apple, such as producing CPUs for the iPhone, as well as business from other major chip designers.” At the time of writing, INTC is trading near the top of its 52-week range and above its 200-day simple moving average of $40. INTC stock has soared 116% year-to-date and 113% over the past 12 months.
