Intel shares jumped again Thursday. President Donald Trump took to Truth Social to declare that Apple had agreed to work with the chipmaker to design and build processors in the United States. The announcement sent Intel up as much as 8.8 percent in trading. It capped a remarkable run that has seen the stock rise more than 464 percent over the past 12 months.
But the latest move marks far more than another green day on the ticker. It signals a potential turning point for American semiconductor manufacturing. One long overshadowed by Asian giants. And it rewards years of painful restructuring at a company many had written off.
The roots of this moment trace back months. In early May, The Wall Street Journal first reported that Apple and Intel had reached a preliminary agreement for Intel to manufacture some of the chips powering Apple devices. Talks had stretched more than a year. The Trump administration pushed hard for the pact. Government grants and a direct stake in Intel played supporting roles.
Apple’s long reliance on Taiwan Semiconductor Manufacturing Co. left it exposed. Geopolitical risks. Supply chain worries. A desire to bring more production home. Those pressures aligned with Washington’s goals. So did Intel’s desperate need for a flagship external customer to validate its foundry ambitions.
From Near Collapse to Record Territory
Flash back to late 2024. Intel looked troubled. Manufacturing delays piled up. The company sat on the sidelines of the artificial intelligence boom. Its stock scraped lows near $19. Leadership changes followed. CEO Lip-Bu Tan stepped in and moved quickly. He courted big names. He secured commitments from Nvidia for specialized AI chips. He leaned on federal support that included a roughly 10 percent government stake and billions in grants.
The turnaround gained momentum. By spring 2026, Intel’s 18A process technology entered risk production. Analysts grew optimistic. Then came the Apple news. Shares blasted through the dot-com era peak. They hit intraday highs above $130 in May. The rally continued into June.
Thursday’s announcement from Trump added fresh fuel. “Apple has agreed to work with Intel to design and build its Chips in America,” he wrote. He framed the deal as part of a broader effort. One that already brought Nvidia aboard and secured Elon Musk’s commitment to a massive “TerraFab” project designed with Intel’s technology team. “I decided to help Intel because we need to design and build our Chips right here in America,” Trump added.
Investors loved it. Yet the market reaction also reflected deeper shifts. Intel no longer competes only on its own designs. Its foundry business now stands as a core growth bet. Landing Apple as a customer — even for select chips — gives the operation instant credibility. It could open doors to others. Samsung has been part of exploratory talks too, according to earlier reports.
The deal remains preliminary. Specific products have not been disclosed publicly. Timelines stay vague. Still, the symbolism lands. Apple, known for tight control over its supply chain, chose to diversify away from TSMC for at least some production. And it chose a U.S. partner backed by the White House.
That choice carries risks for both sides. Intel must prove it can deliver at the scale and efficiency Apple demands. The iPhone maker’s standards are exacting. Any misstep could damage the budding relationship. For Intel, success here would validate years of investment in new fabs and process technology. Failure would raise fresh doubts about its long-term viability.
But the momentum feels real. Intel’s stock performance tells part of the story. From near abandonment to a market capitalization exceeding $600 billion at recent peaks. Analysts have raised price targets. Deutsche Bank lifted its target to $100 from $63 in May, citing the foundry outlook and Apple potential.
Broader market forces help explain the excitement. The AI boom continues to drive insatiable demand for advanced chips. Geopolitical tensions, including recent conflicts disrupting global supply chains, make domestic production more attractive. The Nasdaq’s semiconductor index sits up sharply this year. Intel, once a laggard, now rides the wave.
Of course, challenges remain. Intel still trails TSMC in leading-edge process technology. Competition stays fierce. And the company’s traditional x86 business faces pressure from Arm-based designs — the very architecture Apple champions in its own silicon.
Yet the Apple partnership hints at a new chapter. One where Intel acts as both designer and manufacturer for others. Where national security priorities align with commercial opportunity. And where a storied American name reclaims ground many assumed it had lost for good.
Thursday’s surge shows investors believe the story. They bet that this combination of policy support, big-name customers, and technical progress can sustain the comeback. Whether the preliminary agreement blossoms into high-volume production will decide if that bet pays off. For now, the market has delivered its verdict. Intel is back. And Wall Street is paying attention.
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