Intel stock holds 10% rise after analyst predicts major Apple deal

In a significant market movement, Intel's shares experienced a notable increase in premarket trading on Monday, following a substantial rise on Friday. This surge came after analyst Ming-Chi Kuo from TF International Securities suggested that Intel is on the brink of finalizing a deal to supply Apple with chips by 2027. Kuo took to X to announce his expectations that Intel could start delivering its entry-level M processor to Apple between the second and third quarters of 2027. According to his recent industry insights, there has been a marked improvement in the likelihood of Intel becoming a key supplier for Apple’s advanced nodes. However, Intel’s stock saw a slight dip of 0.59% as of 6:26 AM ET on Monday in early trading. Kuo pointed out that the timing of this collaboration hinges on the development of Intel's process design kit, which is crucial for Apple’s engineers to fabricate the chips. This kit is anticipated to be released in early 2026. Currently, Apple relies on TSMC for its silicon chips used in iPhones, iPads, and Macs. In his remarks, Kuo minimized the potential impact of the Intel-Apple partnership on TSMC, stating that Apple will likely continue to depend heavily on TSMC's advanced technologies for the foreseeable future. He noted that orders for Intel's lowest-end M processor would be relatively small, suggesting minimal effect on TSMC's operations and its technological edge in the coming years. Kuo also indicated that a deal with Intel would reflect strong support from Apple for initiatives aimed at bolstering domestic manufacturing in the U.S. Neither Intel nor Apple has provided a response to inquiries from CNBC regarding these developments. Intel’s stock has seen a resurgence lately, climbing from a low of $17.66 in April, marking a recovery after years of decline. Paul Markham, investment director at GAM Global Equities, remarked that having Apple as a major reference customer could validate Intel's high-performance foundry capabilities. He emphasized the potential for Intel to secure larger volume and more lucrative contracts from Apple, including CPU production for iPhones, along with opportunities from other major chip designers. The relationship between Intel and Apple has been complex since 2005 when it was announced that Intel's processors would power some Apple products. However, Apple began transitioning away from Intel's technology in the early 2020s. Last week, Intel found itself at the center of a lawsuit filed by TSMC, which alleged that a former senior vice president had leaked confidential information to Intel. Intel has not yet responded to these claims.