Intel Stock Surge as Analysts Predict Possible Apple Chip Deal

There are ups and downs in the stock market, and then there are the whispers of Apple’s name that makes the stock jump. Intel’s stock price surprisingly rose before the week started, keeping Friday’s sharp increase of 10% after a famous analyst predicted that the company was on the cusp of a big deal with Apple.

The increase was seen on Monday in the premarket trading, where Intel was still high despite a small decrease of 0.59% at 6:26 a.m ET. Apparently in the year 2025, nothing backs up a stock price like the rumor of a deal with Tim Cook.

Analyst Prediction Ignites Investor Excitement

The price hike started when the well-known analyst Ming-Chi Kuo from TF International Securities, who is very popular for his accurate predictions regarding Apple’s supply chain, posted on the social network X. He posted that Intel could be supplying Apple with its lowest-end M series processors in the second or third quarter of 2027 at the earliest.

Kuo said that his sources in the industry believe that

“visibility on Intel becoming an advanced-node supplier to Apple has recently improved significantly.”

This instantly caused rumors about Intel that the company is moving ahead into the direction of getting back the spotlight in the market that it once ruled.

A Major Deal Dependent on Crucial Development

While analysts are excited about the next steps, Kuo pointed out that the timeframe is reliant on Intel finishing its process design kit (PDK) which is anticipated to be ready in early 2026. The PDK would serve as the technical guideline that Apple’s engineers will require to make new chips using Intel’s foundry.

Currently, TSMC provides Apple with all the chips used in the iPhone, iPad, and Mac product series. Any transfer to Intel, even if it is for a small quantity, would be a significant event for it, and would be a noteworthy symbolic act for the industry as a whole.

No Threat to TSMC

As per Kuo, Apple’s possible adoption of Intel chips would not be a threat to TSMC in the near future. He pointed out that even the lowest-end M processor orders are still small and therefore would not significantly alter TSMC’s revenues, its market power, or hold on any advanced manufacturing technologies. Moreover, TSMC is expected to continue being Apple’s main supplier for high-end and complex chips for quite some time.

U.S Manufacturing Ambitions

Kuo suggested that the business situation was not the only aspect of the cooperation and that it would coincide with the Trump administration’s efforts for U.S chip manufacturing to be strong. Apple embracing Intel, however to a limited extent, would be parallel to the signing of a treaty regarding the production of high-tech semiconductor inside the U.S.

History and Lawsuit

Their past relationship has been full of ups and downs. Other than the well-known fact of Intel having been the processor supplier for Mac computers since 2005, it was a big loss for Intel when Apple decided to stop using its processors going forward in the 2020s. Even a not very significant reunion would be a huge turning point for both companies at this point.

Furthermore, Intel is presently dealing with another difficult issue. It was recently mentioned in a lawsuit, where TSMC claims that a former senior VP has disclosed confidential information to Intel. The company did not provide any comments regarding this legal dispute which is still under process.

Intel’s Revival

With the help of Apple, Intel might be able to draw investors back to the company, where the stock has been recovering over the past year after a long decline. Shares, which reached a low of $17.66 in April, have risen consistently as the company is focusing on the foundry business, along with its semiconductor manufacturing capabilities.

Paul Markham, investment director at GAM Global Equities, told CNBC that the participation of Apple could be very impactful. He said,

“Apple is a potential major reference customer whose presence validates Intel’s high-performance foundry offering. If Intel pulls it off, there is potential to win higher volume and value business from Apple, for example CPU production for the iPhone, and win business from other large chip designers”.

Intel’s alliance with Apple has not yet been made official, but the very fact that the two companies could partner up again has ignited the interest of investors and altered the perception of a long term comeback strategy for Intel. If Intel can achieve its production plan and get Apple as a reference customer, it will not only be able to generate new revenue sources but also restore confidence in the whole semiconductor industry again.