Intel Shares Jump 12% on Trump-Announced Apple Partnership

Intel (INTC) shares rose as much as 12% on Thursday after U.S. President Donald Trump announced that the company would partner with Apple (AAPL) on chip design and production, in what would be a major boost for Intel's efforts to turn around its business.

Details

Trump's social media post did not specify which chips Intel would make for Apple, but a contract with Apple would lock in steady demand from the iPhone maker, boosting Intel's reputation and sales as it looks to close the gap with rival TSMC, the world's biggest contract chipmaker.

Context

For Apple, the deal would help diversify its manufacturing base and add chip capacity at a time when TSMC, its key partner, has been stretched thin by surging demand from AI chip-making clients such as Nvidia (NVDA) and AMD (AMD).

The Trump administration has been stepping up efforts to secure U.S. supply chains for semiconductors and critical minerals, including taking equity stakes in companies to reduce reliance on China. The U.S. government holds a 10% stake in Intel.

What This Means for Investors

The partnership represents a significant boost for Intel's efforts to regain leadership in the chip industry, but execution remains dependent on clearer details about the scope of the deal and regulatory approvals. Investors are closely watching developments that could reshape the industry landscape.