Intel Shares Extend Massive Rally on Apple Chip Deal Speculation
Shares of Intel surged another 6.6% in premarket trading on Monday, continuing a powerful rally that has pushed the stock up approximately 125.6% over the past month and more than 230% since the start of the year.
The latest gains come after reports suggested that Apple has reached a preliminary agreement with Intel to manufacture chips for future Apple devices.
The news triggered a major market reaction on Friday, sending Intel shares sharply higher by around 14%.
Apple and Intel Reportedly Finalized Preliminary Agreement
According to a report from The Wall Street Journal, citing sources familiar with the matter, Apple and Intel have been engaged in intensive negotiations for more than a year.
The report stated that the two companies finalized a formal preliminary agreement in recent months, although specific details regarding which Apple products would use Intel-manufactured chips remain unclear.
The potential partnership is being viewed by investors as a major strategic development for Intel’s foundry business.
Analysts See Strong Momentum Behind Intel Stock
Analysts at Lynx Equity said the Apple report has added even more momentum to a stock that was already experiencing one of the strongest rallies in the semiconductor sector.
The firm reiterated its bullish stance on Intel, stating that it currently prefers Intel shares over Advanced Micro Devices and assigning the stock a $175 price target.
According to Lynx Equity, the potential involvement of Apple could significantly improve investor confidence in Intel Foundry Services (IFS), reducing concerns about the long-term sustainability of the business.
Semiconductor Equipment Companies Could Also Benefit
While Lynx cautioned that near-term financial benefits from the Apple agreement could remain limited due to chip process development timelines, the firm believes investors are unlikely to wait for immediate monetization before bidding shares higher.
The analysts also highlighted potential positive spillover effects for semiconductor equipment manufacturers.
Companies such as ASML Holding, Lam Research, Applied Materials, and KLA Corporation could benefit from increased long-term foundry investment activity.
However, Lynx noted that a substantial increase in wafer fabrication equipment spending is unlikely before 2028.
Intel’s AI and Foundry Push Remains in Focus
Intel’s recent rally reflects growing investor optimism surrounding the company’s efforts to strengthen its position in artificial intelligence infrastructure and semiconductor manufacturing.
A successful partnership with Apple could mark a major milestone in Intel’s broader strategy to compete more aggressively in the global foundry market against rivals such as Taiwan Semiconductor Manufacturing Company.
Markets will now closely monitor whether the reported agreement develops into a larger long-term manufacturing partnership between the two technology giants.
