Earlier this week, President Donald Trump said Apple has agreed to work with Intel to design and manufacture chips in the United States, signaling a potential shift of some of Apple’s processor production from overseas suppliers like TSMC to Intel’s U.S. facilities.
This prospective Apple-Intel partnership, if confirmed, would validate Intel’s push to build a large third‑party foundry business and strengthen U.S. efforts to localize advanced semiconductor manufacturing.
We’ll now examine how this prospective Apple foundry partnership affects Intel’s investment narrative built around foundry execution and advanced packaging.
Find 45 companies with promising cash flow potential yet trading below their fair value.
Intel Investment Narrative Recap
To own Intel today, you need to believe its foundry and AI pivot can eventually turn persistent losses into sustainable, capital‑efficient growth, despite organizational complexity and heavy investment needs. The Apple foundry headlines support that thesis but do not remove the near term execution risk around 18A‑P yields and manufacturing scale. The biggest immediate swing factor remains execution on advanced nodes and packaging, while the key risk is that high spend and complexity fail to translate into reliable, profitable volume.
In that context, Intel’s appointment of Seok‑Hee Lee as executive vice president of Intel Foundry is particularly relevant. He will oversee advanced packaging, system integration, and back‑end manufacturing at a time when Apple, Google and others are looking for credible alternatives to TSMC on cutting edge nodes. If Intel can align Lee’s packaging mandate with its 18A‑P progress, it directly supports the foundry‑execution catalyst that underpins much of the current Intel story.
Yet while the upside story is appealing, investors also need to understand how much depends on Intel actually fixing its manufacturing yields and organizational complexity…
Read the full narrative on Intel (it’s free!)
Intel’s narrative projects $74.6 billion revenue and $10.5 billion earnings by 2029. This requires 11.6% yearly revenue growth and a $13.7 billion earnings increase from -$3.2 billion today.
Uncover how Intel’s forecasts yield a $88.61 fair value, a 34% downside to its current price.
Exploring Other Perspectives 
INTC 1-Year Stock Price Chart
Lower end analysts took a much tougher view, assuming only about 6.5 percent annual revenue growth to roughly US$64.9 billion and earnings of just US$3.4 billion by 2029, which shows how differently you might weigh the same Apple and 18A‑P news against the risk that foundry execution and cost cuts do not play out as planned.
Explore 18 other fair value estimates on Intel – why the stock might be worth as much as $94.14!
Reach Your Own Conclusion
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
A great starting point for your Intel research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
Our free Intel research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Intel’s overall financial health at a glance.
Interested In Other Possibilities?
The market won’t wait. These fast-moving stocks are hot now. Grab the list before they run:
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include INTC.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com