What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) jumped 13.8% in the afternoon session after reports surfaced that Apple has held exploratory discussions with the chipmaker about manufacturing main processors for its devices.
A potential partnership would be a major achievement for Intel's strategy to manufacture chips for other companies and would provide Apple with a U.S.-based alternative to its current primary supplier, Taiwan Semiconductor Manufacturing Company. This news builds upon an already powerful momentum from a blockbuster first-quarter 2026 earnings report. In that report, Intel announced revenue of $13.58 billion and adjusted earnings per share of $0.29, both figures significantly beating analyst estimates. The company also provided a strong forecast for the second quarter, suggesting the positive performance was not a one-time event. The Data Center and AI segment was a standout, with revenue jumping 22% year-over-year.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 45 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 4 days ago when the stock gained 4.9% on the news that several analysts reacted positively to its recent first-quarter results, with one firm upgrading the stock and others raising their price targets.
The positive sentiment followed a strong quarterly report where Intel's data center and AI segment revenue grew 22% year-over-year, and its manufacturing (foundry) revenue increased by 16%. In light of these results, Freedom Broker upgraded its rating on the stock to Buy from Hold.
Additionally, Benchmark raised its price target for the shares to $105, citing strong server CPU demand and better factory output, while DA Davidson increased its target to $77. The renewed investor confidence reflects a belief in the company's turnaround strategy, particularly its push into artificial intelligence and advanced chip manufacturing.
Intel is up 176% since the beginning of the year, and at $108.73 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 $1,913.
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