Intel Gains Momentum with Potential Apple Partnership

Menlo Park, California – December 2, 2025

Intel‘s stock surged by 7.35% on December 2, 2025, following optimistic market speculation about a potential partnership with Apple Inc. Renowned analyst Ming-Chi Kuo indicated that Intel may soon become a key supplier for Apple’s next generation of processors.

Kuo noted that visibility into Intel’s readiness to become an advanced node supplier has improved significantly. He mentioned that Apple is currently testing Intel’s 18A-P manufacturing process, which is projected for broader deployment in the first quarter of 2026. This process is expected to power Apple’s lower-end M-series processors, used in devices like the MacBook Air and iPad Pro.

With shipments slated for the second quarter of 2027, Kuo anticipates initial volumes between 15 million and 20 million chips, potentially worth $1 billion annually for Intel. Should Apple proceed with this partnership, it represents a substantial vote of confidence for Intel as it seeks to rebuild its foundry business.

Historically, Intel has struggled in the foundry space, previously abandoning attempts to establish itself in this area. The company faces challenges, including meeting manufacturing yields that support acceptable profit margins. Moreover, gaining the trust of potential clients remains a hurdle due to Intel’s past failures.

Intel CEO Lip-Bu Tan has prioritized customer relations, which could be instrumental in fostering Apple’s interest in their foundry services. Currently, Apple relies solely on Taiwan Semiconductor Manufacturing Company (TSMC) for chip production, limiting its negotiating power. A partnership with Intel could enhance Apple’s supply chain resilience and offer cost-saving opportunities.

Even with the sunny outlook surrounding a potential Apple deal, analysts caution that it may take years for Intel’s foundry operations to achieve profitability. The company is also actively seeking more customers for its 18A and upcoming 14A processes to solidify its competitive position.

Investor sentiment has shifted positively, with some analysts predicting that if Apple utilizes Intel’s 18A-P process successfully, it could open the door for future contracts. The immediate focus is on manufacturing quality validation and nurturing relationships with major tech players.