Intel shares jumped sharply in pre‑market trading on Monday after a surge on Friday, when a prominent analyst suggested the chipmaker could soon start supplying Apple with a new line of low‑end M‑series processors slated for 2027.
The rally followed a post on X from TF International Securities analyst Ming‑Chi Kuo, who said Intel is likely to ship its lowest‑end “M” processor to Apple as early as the second or third quarter of 2027. Kuo’s latest industry surveys, he wrote, show “visibility on Intel becoming an advanced‑node supplier to Apple has recently improved significantly.”
Despite the buzz, Intel stock slipped 0.59 % at 6:26 a.m. ET on Monday, reflecting a modest pull‑back after the previous day’s gains.
Kuo warned that the timeline hinges on Intel’s release of its process design kit (PDK) – the detailed blueprint Apple’s engineers need to develop the chips – which is expected in early 2026.
Apple’s current silicon for iPhone, iPad and Mac devices is sourced from Taiwan Semiconductor Manufacturing Company (TSMC). Kuo downplayed the potential impact of an Intel‑Apple partnership on the Taiwanese foundry, noting that Apple will remain “highly dependent” on TSMC’s advanced nodes for the foreseeable future.
In absolute terms, order volumes for the lowest‑end M processor are expected to be relatively modest, meaning “virtually no material impact on TSMC’s fundamentals or its technology leadership over the next several years.”
Nevertheless, a deal with Intel would signal strong backing for the U.S. administration’s push to bring more semiconductor manufacturing home, a narrative that aligns with broader policy goals to reduce reliance on overseas supply chains.
Both Intel and Apple declined to comment at the time of writing.
If Intel pulls it off, there is potential to win higher‑volume and higher‑value business from Apple
Intel’s stock has rebounded over the past 12 months after a prolonged decline that saw the share price dip to $17.66 in April. Since then, the stock has rallied, reflecting renewed investor optimism about the company’s foundry strategy.
“Apple is a potential major reference customer whose presence validates Intel’s high‑performance foundry offering,” said Paul Markham, investment director at GAM Global Equities. “If Intel pulls it off, there is potential to win higher‑volume and higher‑value business from Apple, such as CPU production for the iPhone, and to attract other large chip designers.”
The relationship between Intel and Apple dates back to 2005, when Apple first used Intel processors in some Mac models. The partnership faded in the early 2020s as Apple shifted to its own silicon designs and increasingly relied on TSMC’s advanced process technologies.
Intel’s renewed push into the foundry market is part of a broader strategic shift. The company has invested heavily in new manufacturing nodes, including its “Intel 7” process, and is expanding capacity at its D1X and D2C fabs in Arizona. These investments aim to position Intel as a viable alternative to the dominant Asian foundries, offering customers a U.S.-based manufacturing option with comparable performance and power efficiency.
Analysts note that winning Apple’s business could serve as a catalyst for Intel to capture market share from rivals such as TSMC and Samsung. However, they also caution that Apple’s volume requirements and the tight tolerances of its custom silicon could present significant engineering challenges for Intel, especially given the company’s recent struggles to bring new nodes to volume production on schedule.
Last week Intel faced a lawsuit from TSMC alleging that a former senior vice president disclosed confidential information to the Taiwanese foundry. While the legal dispute adds a layer of complexity to the competitive landscape, industry observers expect both companies to continue vying for the lucrative contract‑chip market that powers smartphones, laptops, and emerging AI workloads.
In sum, an Intel‑Apple partnership would not only diversify Apple’s supply chain but also bolster the U.S. semiconductor ecosystem. The outcome will depend on Intel’s ability to deliver a reliable PDK by early 2026, meet Apple’s performance targets, and navigate the intense competitive pressures of the global foundry market.
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