Apple’s Next Power Move: Following Nvidia’s Lead to Invest in Intel?

Silicon Valley's investment chessboard just got more interesting. After Nvidia's strategic play, all eyes turn to Apple—could the tech giant be preparing its own stake in semiconductor rival Intel?

The Chip Wars Heat Up

With Nvidia already placing bets on Intel's manufacturing capabilities, Apple faces mounting pressure to secure its silicon future. The iPhone maker's gradual shift toward in-house chip design makes Intel an increasingly strategic—and ironic—partner.

Why This Timing Matters

As AI processing demands explode and geopolitical tensions reshape supply chains, controlling chip production becomes existential. Apple's massive cash reserves—always burning a hole in Tim Cook's pocket—could finally find purpose beyond shareholder buybacks.

The Bottom Line

This isn't about friendship—it's about futures. While Wall Street analysts would probably call it 'strategic synergy,' let's be real: it's corporate survival dressed up as innovation. When tech titans start investing in each other, someone's planning for a world where competition takes a backseat to coexistence.

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Interestingly, Intel is also now partially owned by the U.S. government, following the White House’s 10% stake in the ailing chipmaker. Sources also suggest that Apple and Intel have discussed the possibility of working more closely together, potentially in smartphone chips. However, talks are in very early stages and may not lead to a deal. Following the news, INTC shares are up 3.7% in pre-market trading, while AAPL is trending slightly higher.

Apple Was Once an Intel Customer

Apple was once one of Intel’s largest customers, buying chips for its iPads and Macs. However, that partnership ended when Apple started manufacturing its own, home-grown M-chips. In 2019, Apple also acquired most of Intel’s modem chip business.

Despite recent discussions, Apple is unlikely to return to Intel processors for its devices. The Cupertino company sources its most advanced chips from Taiwan Semiconductor (TSM).

Still, an investment from a tech giant like Apple could further validate Intel’s turnaround efforts, after Nvidia and SoftBank’s commitments. The government’s investment is viewed as a major effort to promote domestic chip production and restore investor confidence in Intel. Since August, INTC stock has surged over 60%.

Why Would Apple Invest in Intel?

Apple’s intent in collaborating with Intel could be to explore the possibility of having Intel manufacture some of its future chips. With growing government pressure to boost U.S. semiconductor manufacturing, Intel offers Apple a way to diversify away from its current chip supplier, TSMC.

This move WOULD help Apple reduce supply chain risks while supporting a key American chip manufacturer. Although Apple remains a competitor to Intel in chip design, an investment could strengthen collaboration and supply chain resilience.

Intel’s foundry business, however, remains a challenge. Analysts believe the company needs more money and new foundry customers to revive its ailing business. Nvidia’s deal did not include any foundry commitments, but if Apple’s did, it could significantly boost confidence in Intel’s turnaround strategy.  

AAPL vs. INTC: Which Is the Better Technology Stock?

We used the TipRanks Stock Comparison Tool to determine which stock is currently preferred by analysts.

Currently, analysts are cautious about the long-term prospects of both stocks, given the challenges each company faces in the market. Neither stock commands strong optimism, reflecting uncertainties in their future growth potential.