Intel's share price jumped sharply on Tuesday after reports emerged that the chipmaker is in early talks with Apple for a potential collaboration. The news was amplified by a public endorsement from former President Donald Trump, fueling investor optimism about a revival of U.S. semiconductor manufacturing.
A sudden rally on Wall Street
Trading volume for Intel stock more than doubled as buyers rushed in. The rally erased weeks of losses and pushed the company's market value higher by billions of dollars in a single session. Investors appeared to bet that a partnership with Apple—one of the world's largest buyers of chips—could give Intel a badly needed revenue boost and a pathway back into mobile computing.
Apple currently designs its own processors for iPhones, iPads, and Macs, relying on Taiwan Semiconductor Manufacturing Company (TSMC) for production. But shifting geopolitical tensions and supply-chain disruptions have pushed Apple to explore alternatives for critical components. Intel's advanced fabrication plants in the United States could offer a more secure, domestic option.
Trump's backing and the political angle
Trump weighed in on social media, calling a potential Intel-Apple deal “great for America” and urging both companies to move forward. The endorsement carries weight because Trump has historically pushed for bringing chip production back to U.S. soil. During his presidency, he lobbied for tariffs on foreign-made semiconductors and signed an executive order aimed at strengthening domestic supply chains.
His support for this specific collaboration adds a layer of political momentum. The Biden administration has also made semiconductor self-sufficiency a priority, passing the CHIPS and Science Act in 2022, which allocated $52 billion for domestic chip manufacturing. Intel has already broken ground on new factories in Ohio and Arizona with the help of those subsidies.
What the collaboration could mean for U.S. chipmaking
If Intel secures Apple as a client, it would be the company's biggest win in years. Intel has struggled to keep pace with TSMC and Samsung in the race to manufacture the smallest, most power-efficient chips. But recent investments in next-generation fabrication technology—dubbed Intel 18A—are designed to close that gap.
Apple's volume and technical demands would force Intel to accelerate its roadmap. That could have a spillover effect across the broader U.S. chip ecosystem, creating jobs and strengthening the domestic supply chain for everything from smartphones to data centers. The potential partnership also signals that Apple is willing to reduce its dependence on Asian foundries, a shift that aligns with national security goals.
Unanswered questions and next steps
Neither Intel nor Apple has confirmed the talks. Spokespeople for both companies declined to comment on what they called “market rumors.” Analysts caution that a deal is far from certain, pointing to Apple's deep integration with TSMC and the technical risks of switching foundries mid-cycle.
The next concrete event to watch is Intel's investor day scheduled for late next month, where executives are expected to provide updates on their foundry business and customer pipeline. Until then, the stock rally remains a bet on possibility—not a sure thing.
