Intel (INTC) Stock Rockets 14% After Apple Partnership and SK Hynix Negotiations Surface

Key Takeaways

• Intel shares jumped approximately 14% on Friday, followed by an additional 6% gain in premarket trading Monday, reaching $130.13.
• A preliminary chip manufacturing agreement between Apple and Intel was reached, with support from the U.S. government playing a facilitating role.
• Separate reports indicate Intel is negotiating with SK Hynix regarding chip-packaging solutions, which could establish a second major foundry partnership.
• Following the conversion of $9 billion in federal grants to equity, the U.S. government now owns approximately 10% of Intel.
• First-quarter results significantly exceeded projections — adjusted EPS reached $0.29 compared to the $0.01 estimate, while revenue totaled $13.58B against a $12.42B forecast.

Intel’s trajectory in 2026 has been nothing short of remarkable. The chipmaker’s stock has surged more than threefold year-to-date, with the most recent rally fueled by consecutive major announcements that signal a potential turnaround for its struggling foundry operations.

Intel Corporation, INTC

According to a Friday report from The Wall Street Journal, Intel and Apple have struck a preliminary deal that would see Intel produce processors for Apple products. This agreement emerged after negotiations spanning over a year, with assistance from U.S. federal officials who had previously transformed $9 billion in government grants into equity ownership — establishing roughly a 10% government stake in the semiconductor giant.

The announcement triggered a surge of up to 14% in INTC shares on Friday. By Monday’s premarket session, the momentum continued with an additional 6% climb, pushing the stock to $130.13.

A follow-up report added fuel to the rally. ZDNet Korea disclosed that Intel is engaged in discussions with SK Hynix concerning chip-packaging capabilities designed to combine high-bandwidth memory with general-purpose processors — a market segment where TSMC currently holds dominant position. Neither Intel nor SK Hynix has issued public statements regarding these negotiations.

Should both partnerships materialize, Intel’s foundry division would transition from having no significant external clients to securing two major customers within mere weeks.

Strong First Quarter Results Paved the Way

The Apple partnership announcement didn’t emerge in a vacuum. Intel had already demonstrated solid performance before these major headlines broke.

First-quarter financial results substantially outperformed analyst expectations. The adjusted earnings per share of $0.29 crushed the consensus estimate of just $0.01. Total revenue reached $13.58 billion, surpassing the anticipated $12.42 billion. The data center division delivered particularly strong performance, posting 22% revenue growth to $5.1 billion, propelled by robust CPU demand for artificial intelligence applications.

During the earnings call, CEO Lip-Bu Tan stated: “The CPU is reinserting itself as the indispensable foundation of the AI era — this isn’t just our wishful thinking, it’s what we hear from our customers.”

The impressive quarterly performance triggered a 20% jump in INTC shares during after-hours trading when the results were disclosed.

Analyst Response

Bank of America upgraded its Intel price target from $56 to $96 following the Apple announcement, though the firm maintained its Underperform rating. The institution recognized that the foundry partnership could generate substantial revenue streams, despite maintaining its overall cautious perspective on the stock.

Prior to these developments, Intel’s only publicly confirmed external foundry client was Terafab — a venture connected to Elon Musk intended to supply Tesla and other Musk-affiliated enterprises — though specific terms of that partnership remain largely undisclosed.

Broader market conditions also provided favorable backdrop. The S&P 500 climbed 0.84% to close at 7,398.93 on Friday, while the Nasdaq advanced 1.71% to 26,247.08, with both indices reaching all-time highs. The global semiconductor industry has collectively added approximately $3.8 trillion in market capitalization during the past six weeks.

The April employment report showed non-farm payroll additions of 115,000, exceeding expectations, while the unemployment rate held at 4.3%.