Intel and Apple reach a preliminary chip foundry agreement, shares surge 13% to a record high of $130.57

Intel’s intraday stock price jumped 13% to $130.57 on May 8, setting a new all-time high and surpassing the 2000 dot-com bubble peak of $74.88 by more than 74%. CNBC, citing the Wall Street Journal, reported that after more than a year of negotiations, Apple and Intel have reached a preliminary chip foundry outsourcing agreement, under which Intel will manufacture some chips for Apple. The political backdrop to this case is that President Trump personally lobbied Cook to reach the deal. In August 2025, the U.S. government used funding from the CHIPS Act to buy 433 million shares of Intel at $20.47 per share (total investment $8.9 billion, representing 9.9% equity). The value of the government’s current holdings has already surpassed $50 billion.

Preliminary agreement: Intel Foundry to do chip outsourcing for Apple

Key points of this agreement:

Scope of cooperation: Intel will provide outsourced manufacturing for some of Apple’s chips

Stage of cooperation: preliminary agreement; final contract details not disclosed

Negotiation timeline: more than one year of talks

Significance for Intel Foundry business: Q1 Foundry segment operating loss of $2.4 billion; Apple orders could significantly bolster results

Apple previously relied mainly on TSMC to manufacture its A-series and M-series processors. This outsourcing collaboration with Intel marks Apple’s move to diversify its chip supply chain, no longer betting everything on TSMC. For Intel Foundry—long seen as a “strategic burden” department—this is the first time it has secured orders from a top-tier customer, a concrete signal of a business turning point.

Political backdrop: Trump personally lobbied; U.S. government holds 9.9% equity

The political-economic structure of this case:

President Trump personally lobbied Apple CEO Tim Cook

In August 2025, the U.S. government used CHIPS and Science Act funding to purchase 433 million shares of Intel at $20.47 per share, totaling $8.9 billion, representing 9.9% of Intel’s equity

As of 5/8, Intel’s stock price broke $120; the market value of the U.S. government’s stake surpassed $50 billion

Government investment return: with a $8.9 billion cost, returns of about 5x or more

The setup of the U.S. government becoming a major shareholder pushes “semiconductor manufacturing on U.S. soil” to the core of industrial policy. The outsourcing collaboration between Intel and Apple can be seen as a concrete outcome of the CHIPS Act strategy.

Market reaction: Intel +13% to new high; semiconductor stocks broadly rise

Market performance on 5/8:

Intel rose 13% intraday to $130.57

Set a new all-time high, surpassing the 2000 peak of $74.88 by 74%

On the same day, other semiconductor stocks such as AMD and Micron also moved up in tandem

Specific events to watch next: the timeline for signing the final contract for the Intel-Apple deal, the specific chip product lines Apple outsources to Intel (A-series / M-series / others), subsequent updates from Intel Foundry’s investor day, and whether the U.S. government will further increase its holdings or adjust its stake in Intel.

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