What Happened?

Shares of computer processor maker Intel (NASDAQ: INTC) jumped 14.1% in the afternoon session after reports surfaced that Apple has engaged in preliminary discussions with the company about manufacturing processors in the United States. 

This potential partnership, though not finalized, would be a significant milestone for Intel's foundry business, which manufactures chips for other companies, as it could reduce Apple's reliance on Taiwan Semiconductor. The news amplified positive sentiment following Intel's strong first-quarter 2026 financial results, which significantly beat analyst expectations.

The shares closed the day at $124.86, up 13.8% from previous close.

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What Is The Market Telling Us

Intel’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. But moves this big are rare even for Intel and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 3.9% on the news that strong results from Advanced Micro Devices signaled robust and sustained demand for artificial intelligence (AI) infrastructure. AMD reported a 38% year-on-year revenue increase, with its data center business surging 57% to $5.8 billion. 

This blowout report is seen by investors as confirmation that heavy spending on AI by major tech companies is creating a rising tide for the entire industry. The positive outlook suggests that the high demand for chips and components needed to build out data centers is widespread. The news sparked a broad rally across the semiconductor sector, as the market anticipates that peer companies will also benefit from the ongoing AI infrastructure boom.

Intel is up 217% since the beginning of the year, and at $124.71 per share, has set a new 52-week high. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $2,228.

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