Intel (INTC) Shatters $40 Barrier on Reported Apple AI Chip Deal
Intel stock just blasted past a key psychological level. The catalyst? A reported deal to supply Apple with next-generation AI chips—a move that could reshape the competitive landscape.
The $40 Breakthrough
For months, the $40 mark acted as a stubborn ceiling for INTC. Today's surge isn't just about a number; it's a signal. The market is pricing in a potential turnaround, betting that Intel's manufacturing prowess can capture a slice of the booming AI hardware market currently dominated by others.
Why This Deal Matters
Apple doesn't partner lightly. Securing this contract suggests Intel's process technology is finally competitive at the cutting edge. It's a direct challenge to the established players and could funnel billions into Intel's foundry business. This isn't just a supply deal—it's a credibility injection.
The Financial Ripple
Analysts are scrambling to update models. The deal promises significant revenue streams, but the real value is strategic. It positions Intel inside the most valuable consumer electronics ecosystem on the planet. For a company in the midst of a complex transformation, that's oxygen.
Of course, on Wall Street, every breakthrough is just future underperformance waiting to happen—the cynics are already asking if this is enough to justify the run-up, or just another hype cycle for a legacy giant playing catch-up.
The bottom line: Intel just got a powerful new partner in the AI arms race. The stock reaction is the first verdict. The much harder part—execution and delivering margins—comes next.
How an Intel-Apple Partnership Could Boom INTC stock
The rumor has yet to be confirmed by either Apple Inc. or Intel; however, the news has sparked a solid rally for both stocks, with AAPL also up 3.7% in the last 5 days. Despite the recent climb, analysts remain mixed on Intel’s (INTC) stock future, with many calling for another decline. Loop Capital and Rosenblatt have a $25 target, while JP Morgan targets $30, and B of A Securities aims for $34.
Meanwhile, Paul Markham, investment director at GAM Global Equities, agrees with Kuo about optimistic prospects for INTC stock. “Apple is a potential major reference customer whose presence validates Intel’s high-performance foundry offering,” he told CNBC in an interview. “If Intel pulls it off, there is potential to win higher volume and value business from Apple, for example, CPU production for the iPhone, and win business from other large chip designers.” At press time, INTC is trading NEAR the top of its 52-week range and above its 200-day simple moving average at $40. INTC shares have soared 116% year to date and 113% over the past 12 months.
