Intel (INTC) stock hits all-time highs after successful Apple Chip deal

TLDR

• Apple and Intel have reached a tentative agreement that Intel will manufacture chips for Apple devices
• Intel stock rose more than 14%, hitting a new all-time high above $115
• Intel’s Q1 2026 revenue reached $13.6 billion, up 7% year over year, with adjusted EPS of $0.29 versus consensus of $0.01.
• The Trump administration played a direct role in brokering the Apple-Intel deal, with Commerce Secretary Howard Lutnick meeting with Tim Cook frequently.
• Intel CEO Lip Bo Tan said demand now outstrips supply: “A year ago the conversation was whether we could survive.”

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Intel (INTC) stock hit an all-time high on Friday, rising more than 14% as an initial chip-making deal with Apple and a strong earnings report came out at the same time.

Apple and Intel reach a preliminary agreement to make chips

The Wall Street Journal reports $ Apple and $INTC Intel has reached a tentative agreement to manufacture some chips for Apple devices.

It is still unclear which Apple products Intel will make chips for.

Trump administration… pic.twitter.com/cHXYUh6G8j

– Wall Street Engine (@wallstengine) May 8, 2026

Intel stock reached $115.98 in early trading, and later extended gains as the session progressed. The stock was up about 14.87% by midday.

Intel Corporation, INTC

The primary catalyst was the report that Apple and Intel had reached a tentative agreement that Intel would manufacture some of the chips used in Apple devices. Intensive talks between the two companies have been continuing for more than a year.

It is still unclear which Apple products Intel will make chips for. Apple ships more than 200 million iPhones annually, as well as millions of iPads and Mac computers. The two companies declined to comment.

The Trump administration was pivotal in achieving this deal. Commerce Secretary Howard Lutnick has met repeatedly with Apple CEO Tim Cook over the past year to advance the partnership. President Trump personally invited Intel to the cookout at a meeting at the White House.

“As soon as we got in, Apple came in, Nvidia came in, a lot of smart people came in,” Trump said in January.

The US government converted nearly $9 billion in federal grants into Intel stock last summer, giving it a 10% stake in the company. This support has given Intel credibility with potential partners.

Intel’s first-quarter earnings beat expectations

Apple’s news came on top of strong earnings results. Intel It reported first-quarter 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 were 41%, exceeding guidance. CEO Lip-Bu Tan highlighted that demand for Intel’s CPUs and manufacturing capacity is on the rise as AI applications move closer to end users.

Apple is under pressure to diversify its chip supply. In his last two earnings calls, Cook cited the lack of availability of advanced chips as a reason Apple can’t meet demand for the iPhone. These restrictions are expected to continue into the current quarter, affecting several Mac models.

Apple relies heavily on TSMC, but growing demand for AI chips from Nvidia and others has reduced Apple’s leverage with the Taiwanese manufacturer.

Intel’s broader transformation push

Intel has been rapidly rebuilding itself under Tan, who took over in March 2025. He reshaped the leadership, hiring a former Intel employee. TSMC CEO Wei-Jen Lo, has 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 this collaboration.

Nvidia invested $5 billion in Intel in September, with a deal with Intel to build custom data center CPUs for Nvidia. Elon Musk also announced a plan last month to build a chip factory in Texas in collaboration with Intel as part of his TerraFab project.

Intel now has foundry partnerships with Apple, Nvidia, and SpaceX/Musk, the three companies Lutnick was working to bring on board.

Tan put it plainly on the earnings call: “Today it’s about how fast can we add manufacturing capacity.”