Intel Stock Jumps on Potential Apple Chip Deal

This article first appeared on GuruFocus.

Intel (NASDAQ:INTC) shares rose 4% on Tuesday after a report suggested the chipmaker may be in discussions with Apple (NASDAQ:AAPL) over potential manufacturing work.

The report indicated Apple has held early-stage talks with Intel regarding use of its U.S.-based chip production facilities, though no agreement has been finalized.

The potential partnership could mark a notable step for Intel’s foundry business, which has received significant investment as the company seeks to compete with established manufacturers such as Taiwan Semiconductor Manufacturing. Securing a major client has been a key objective for the unit.

Apple is also said to be exploring similar discussions with other chipmakers, suggesting any deal may still be uncertain. Companies involved have not publicly commented on the reported talks.

If realized, a collaboration could support Intel’s broader strategy to expand its manufacturing footprint and attract external customers in a highly competitive semiconductor market.