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Intel Soars on Preliminary Apple Chip Deal Reports: More Room to Run?
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Key Takeaways
Intel shares jumped after reports of a preliminary chip manufacturing deal with Apple
INTC posted Q1 revenue of $13.6B, up 7%, with foundry revenue rising 16%.
Intel forecast Q2 revenue of $13.8B-$14.8B amid strong AI and data center demand.
Intel Corporation (INTC - Free Report) has enjoyed a dream run this year, and its shares climbed more than 15% last week. The surge was prompted by reports that the company reached a preliminary deal to manufacture some chips for Apple Inc.’s (AAPL - Free Report) devices.
What the Deal Means
The deal comes as part of the United States’ push to boost microchip production. It indicates a major boost to Intel’s chip production throughout the year. Apple is one of the leading consumer electronics companies in the world, and high demand for its products means a steady requirement for chips, which is likely to boost chip supply from Intel.
The U.S. government became the largest shareholder of Intel last year and played a key role in bringing Apple and Intel together.
Steady Performance by Intel
The Lip-Bu Tan-led company’s first-quarter 2026 earnings revenues improved significantly both sequentially and from the year-ago levels. The company reported quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.01 per share. Intel’s revenues totaled $13.6 billion, up 7% year over year.
Intel’s net loss (GAAP) of $4.8 billion widened in the first quarter of 2026 from $887 million in first-quarter 2025. However, robust data center demand and AI growth have been going in favor of the company. Intel’s foundry business grew 16% to $5.42 billion, while the data center division grew 22% to $5 billion.
Intel gave a revenue forecast of $13.8 billion to $14.8 billion for its second quarter.
Intel’s stock has soared 226% year to date and has more room to grow as the company continues to maintain focus on its AI-centric products.
Large spending on manufacturing expansion and restructuring costs has significantly weighed on recent net earnings. While these factors present near-term challenges, Intel’s long-term strategic initiatives remain intact. Thus, maintaining a hold position on the stock seems appropriate at this stage.
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Intel Soars on Preliminary Apple Chip Deal Reports: More Room to Run?
Key Takeaways
Intel Corporation (INTC - Free Report) has enjoyed a dream run this year, and its shares climbed more than 15% last week. The surge was prompted by reports that the company reached a preliminary deal to manufacture some chips for Apple Inc.’s (AAPL - Free Report) devices.
What the Deal Means
The deal comes as part of the United States’ push to boost microchip production. It indicates a major boost to Intel’s chip production throughout the year. Apple is one of the leading consumer electronics companies in the world, and high demand for its products means a steady requirement for chips, which is likely to boost chip supply from Intel.
The U.S. government became the largest shareholder of Intel last year and played a key role in bringing Apple and Intel together.
Steady Performance by Intel
The Lip-Bu Tan-led company’s first-quarter 2026 earnings revenues improved significantly both sequentially and from the year-ago levels. The company reported quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.01 per share. Intel’s revenues totaled $13.6 billion, up 7% year over year.
Intel’s net loss (GAAP) of $4.8 billion widened in the first quarter of 2026 from $887 million in first-quarter 2025. However, robust data center demand and AI growth have been going in favor of the company. Intel’s foundry business grew 16% to $5.42 billion, while the data center division grew 22% to $5 billion.
Intel gave a revenue forecast of $13.8 billion to $14.8 billion for its second quarter.
Intel’s stock has soared 226% year to date and has more room to grow as the company continues to maintain focus on its AI-centric products.
Why You Should Hold Intel Now
Intel’s net profit slowed in the first quarter, with the company reporting trailing 12-month (TTM) figures with a negative margin of 5.9% in comparison to the Zacks Semiconductor General Industry’s 52.5%. Intel currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Large spending on manufacturing expansion and restructuring costs has significantly weighed on recent net earnings. While these factors present near-term challenges, Intel’s long-term strategic initiatives remain intact. Thus, maintaining a hold position on the stock seems appropriate at this stage.