Story perspectives

Intel Secures Apple Chip Deal, Shares Jump 19%

5/10/2026

Summary

**Intel Secures Apple Deal**

Intel announced a deal to make Apple processors, sending its shares up 19% to $125 on May 8 and lifting the S&P 500 and Nasdaq to record highs.
Apple, supplied by Taiwan Semiconductor Manufacturing Co., is diversifying using Intel’s 18A process, a node used for Amazon Trainium 4 AI chips.
The U.S. government’s $8.9 billion investment in Intel, due August 2025, is valued at $55 billion as Intel targets break-even at its U.S. foundry by 2027.

Summary

TSMC Dominates

Taiwanese experts say Intel and Samsung trail TSMC in yields and power efficiency, limiting Apple’s flagship-chip shift.
Liu Pei-chen says only 2-nm or gate-all-around breakthroughs could let rivals challenge TSMC.
Intel posted Q1 revenue of $13.6 billion, a 7 % rise, with foundry sales of $174 million.
CEO Lip-Bu Tan said AI’s wave drives demand.
CFO David Zinsner said the priority is maximizing factory network, noting stronger yields are needed before larger orders.

Summary

**Apple Announces Earnings**

Apple reported March-quarter revenue of $111.2 billion, up 17 %, and earnings per share of $2.01, up 22 %.
The company raised its dividend to 27 cents per share and added $100 billion to its share-buyback program.
Tim Cook announced he will become executive chairman on Sept. 1, with hardware chief John Ternus succeeding him as CEO.
Apple signed a deal with Google’s Gemini to enhance Siri, though the assistant is not yet a full-featured AI agent.

Summary

**Intel Courting Apple**

Commerce Secretary Howard Lutnick met repeatedly with Tim Cook, Elon Musk and Jensen Huang to persuade Apple to partner with Intel.
Elon Musk announced he will rely on Intel’s future 14A node for his $119 billion Terafab in Austin, Texas, to produce chips for Tesla, SpaceX and xAI.
Nvidia’s $5 billion investment in Intel and Apple’s interest in Intel’s 18A process signal expanding industry support.

History

Historical Context

After opening its first Arizona wafer plant in 1980, Intel began expanding domestic capacity, and in the mid-1990s the company invested billions in a new Arizona fabrication facility with support from the U.S. Department of Commerce and state incentives. The move restored U.S. manufacturing and set a precedent for later government-backed deals such as Intel’s foundry partnership with Apple.

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**Intel Secures Apple Deal**

Intel announced a deal to make Apple processors, sending its shares up 19% to $125 on May 8 and lifting the S&P 500 and Nasdaq to record highs.
Apple, supplied by Taiwan Semiconductor Manufacturing Co., is diversifying using Intel’s 18A process, a node used for Amazon Trainium 4 AI chips.
The U.S. government’s $8.9 billion investment in Intel, due August 2025, is valued at $55 billion as Intel targets break-even at its U.S. foundry by 2027.

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