Intel Surges as Apple M-Series Foundry Talk Emerges

According to Yahoo Finance, Intel shares jumped 8.6% on Tuesday after TF International analyst Ming-Chi Kuo said on X that Intel could begin manufacturing Apple's M-series chips for the MacBook Air and iPad Pro as early as 2027.

If confirmed, the report would be a major vote of confidence for Intel's contract manufacturing push. The company's foundry arm has struggled to win external customers in recent years, posting about $4.2 billion in revenue last quarter, far below Intel's own product business at roughly $12.7 billion. Analysts say most of the foundry output is still tied to Intel's in-house chips.

Kuo added that while this potential deal would not immediately challenge TSMC's dominant role as Apple's primary chip maker, it would show that Intel is capable of producing advanced silicon for tier-one customers. Apple is expected to use Intel's upcoming 18A-P process, which is said to outperform the current 18A node.

Apple previously relied on Intel processors in its Mac lineup before switching to its own designs produced elsewhere. Under the rumored arrangement, Apple would continue to design its chips, while Intel would provide the manufacturing technology.

Intel's stock has been on a tear, up about 115% year-to-date and more than 113% over the past 12 months. Investor sentiment improved after the leadership change from Pat Gelsinger to current CEO Lip-Bu Tan.

The U.S. government has also become one of Intel's largest shareholders with around a 10% stake, although President Trump has publicly questioned Tan's past investments in Chinese tech firms. Beyond government backing, Nvidia and SoftBank have collectively invested roughly $7 billion into Intel.

Despite the optimism, Intel remains far behind Nvidia and AMD in the AI chip race. Nvidia is currently the world's most valuable public company, with a market value above $4.4 trillion.

Still, Intel has made progress recently, including finally shipping its long-delayed 18A-based chips. Years of missteps, however, have weakened its lead in both consumer and data-center CPUs, as AMD continues to gain ground.

At AMD's November Financial Analyst Day, CEO Lisa Su said the company expects to capture about 50% of data-center CPU revenue within three to five years, and more than 40% of client revenue across consumer and gaming markets.