Trump Claims Apple to Partner with Intel on Chips
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: NASDAQ.COM
- Stock Surge: Trump's claim that Apple will collaborate with Intel to design and manufacture chips in the U.S. led to an approximately 11% surge in Intel's stock on Thursday, pushing its market value past $670 billion, reflecting market optimism about the potential partnership.
- Unconfirmed Partnership: Despite the excitement generated by Trump's statement, neither Apple nor Intel has confirmed the collaboration, leaving investors questioning the existence of a substantive agreement and increasing market uncertainty.
- Intel's Performance Recovery: Intel reported a 7% year-over-year revenue increase to $13.6 billion in Q1, with its data center and AI business growing by 22%, indicating positive progress in its turnaround, although external customers still represent a small portion of its foundry revenue.
- Valuation Challenges: With a market value exceeding $674 billion and trailing revenue of about $53 billion, Intel's stock trades at over 13 times sales, leading analysts to suggest that the current valuation already incorporates optimistic expectations regarding the company's turnaround, necessitating confirmation of any deal with Apple to further boost stock prices.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 121.100
Low
20.00
Averages
39.30
High
52.00
Current: 121.100
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Process Launch: Intel announced that its 18A manufacturing process has entered risk production, indicating the company's commitment to manufacturing and potentially attracting external customer interest, thereby enhancing its market competitiveness.
- Performance Improvement: Compared to 18A, the 18A-P delivers a 9% performance increase at the same power level or an 18% reduction in power consumption at the same processing speed, which will enhance product market appeal and meet customer demand for high-performance chips.
- Strong Customer Demand: In the first quarter, demand for Intel's central processors surged, particularly from companies offering AI services, leading to sales of chips that were originally slated for write-off, demonstrating strong market demand for its products.
- Revenue Forecast Upgrade: Intel forecasts second-quarter revenue between $13.8 billion and $14.8 billion, exceeding the market estimate of $13.07 billion, reflecting the company's robust performance in the rapidly growing AI market.
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- Stock Surge: Intel's shares jumped about 11% on Thursday, pushing its market value past $670 billion, reflecting market optimism following Trump's social media claim about a collaboration with Apple, despite no confirmation from either company.
- Unclear Collaboration Details: While Trump stated that Apple has agreed to work with Intel on chip design and manufacturing, both companies have refrained from making any formal comments, leaving investors cautious about the authenticity and potential impact of this collaboration.
- Financial Recovery: Intel reported a 7% year-over-year revenue increase to $13.6 billion in Q1 2026, with its data center and AI business growing by 22%, indicating a gradual recovery after years of decline; however, external customers still represent a small portion of its foundry revenue.
- Valuation Challenges: With a market cap exceeding $674 billion and trailing revenue of about $53 billion, Intel's stock trades at over 13 times sales, raising concerns among investors about its high valuation despite operational improvements, particularly in light of the unconfirmed nature of the Apple collaboration.
See More
Trump Claims Apple to Partner with Intel on Chips
- Stock Surge: Trump's claim that Apple will collaborate with Intel to design and manufacture chips in the U.S. led to an approximately 11% surge in Intel's stock on Thursday, pushing its market value past $670 billion, reflecting market optimism about the potential partnership.
- Unconfirmed Partnership: Despite the excitement generated by Trump's statement, neither Apple nor Intel has confirmed the collaboration, leaving investors questioning the existence of a substantive agreement and increasing market uncertainty.
- Intel's Performance Recovery: Intel reported a 7% year-over-year revenue increase to $13.6 billion in Q1, with its data center and AI business growing by 22%, indicating positive progress in its turnaround, although external customers still represent a small portion of its foundry revenue.
- Valuation Challenges: With a market value exceeding $674 billion and trailing revenue of about $53 billion, Intel's stock trades at over 13 times sales, leading analysts to suggest that the current valuation already incorporates optimistic expectations regarding the company's turnaround, necessitating confirmation of any deal with Apple to further boost stock prices.
See More
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- Merger Complexity: Although Musk is interested in merging the two companies, any merger would require approval from both boards and shareholders, with Tesla shareholders particularly concerned about share conversion and SpaceX's high valuation and losses, which could impact the merger's feasibility.
- Future Outlook: Analysts predict that a merger could occur within a year; however, despite the merger's apparent rationale, SpaceX's current price-to-sales ratio of 130 is significantly higher than the average tech stock's 10, prompting investors to carefully consider whether to buy its shares at this time.
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- Investment and Equity Relations: Tesla's $2 billion investment in SpaceX's xAI gives it about a 1% stake, while SpaceX's purchase of $697 million worth of Tesla's Megapack batteries establishes a financial interconnection that lays the groundwork for a potential merger.
- Regulatory and Shareholder Concerns: Any merger would require approval from both companies' boards and shareholders, with Tesla shareholders particularly focused on share conversion and SpaceX's high market cap, which could impact the feasibility and timing of the merger.
See More
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- New Process Launch: Intel announced that its 18A manufacturing process has entered risk production, indicating the company's commitment to manufacturing and potentially attracting external customer interest, thereby enhancing its market competitiveness.
- Performance Improvement: Compared to 18A, the 18A-P delivers a 9% performance increase at the same power level or an 18% reduction in power consumption at the same processing speed, which will enhance product market appeal and meet customer demand for high-performance chips.
- Strong Customer Demand: In the first quarter, demand for Intel's central processors surged, particularly from companies offering AI services, leading to sales of chips that were originally slated for write-off, demonstrating strong market demand for its products.
- Revenue Forecast Upgrade: Intel forecasts second-quarter revenue between $13.8 billion and $14.8 billion, exceeding the market estimate of $13.07 billion, reflecting the company's robust performance in the rapidly growing AI market.
See More
Japan and South Korea Stocks Hit Record Highs Amid Middle East Peace
- Strong Market Performance: Japan's Nikkei index rose 0.8%, hitting a new record for the fifth consecutive session with a weekly gain of 8.5%, reflecting strong market confidence in economic recovery.
- Oil Price Decline Impact: Brent crude futures fell 1% on Friday to $79.03 per barrel, marking a 9.5% decline for the week, which alleviated inflation concerns and boosted market optimism.
- Dollar Strength Resurgence: The U.S. dollar index rose 1% on Friday to 100.78, pushing the yen down to 161.26, the lowest in two years, intensifying speculation about potential Japanese intervention.
- Federal Reserve Policy Impact: Nine of the 19 Fed officials indicated potential rate hikes this year, causing short-term Treasury yields to rise 9 basis points to 4.1790%, reflecting increased market confidence in the Fed's inflation-fighting credibility.
See More
Trump Claims Apple to Collaborate with Intel on Chips
- Stock Surge: Intel's shares jumped about 11% on Thursday, pushing its market value past $670 billion, reflecting market optimism following Trump's social media claim about a collaboration with Apple, despite no confirmation from either company.
- Unclear Collaboration Details: While Trump stated that Apple has agreed to work with Intel on chip design and manufacturing, both companies have refrained from making any formal comments, leaving investors cautious about the authenticity and potential impact of this collaboration.
- Financial Recovery: Intel reported a 7% year-over-year revenue increase to $13.6 billion in Q1 2026, with its data center and AI business growing by 22%, indicating a gradual recovery after years of decline; however, external customers still represent a small portion of its foundry revenue.
- Valuation Challenges: With a market cap exceeding $674 billion and trailing revenue of about $53 billion, Intel's stock trades at over 13 times sales, raising concerns among investors about its high valuation despite operational improvements, particularly in light of the unconfirmed nature of the Apple collaboration.
See More
Trump Claims Apple to Partner with Intel on Chips
- Stock Surge: Trump's claim that Apple will collaborate with Intel to design and manufacture chips in the U.S. led to an approximately 11% surge in Intel's stock on Thursday, pushing its market value past $670 billion, reflecting market optimism about the potential partnership.
- Unconfirmed Partnership: Despite the excitement generated by Trump's statement, neither Apple nor Intel has confirmed the collaboration, leaving investors questioning the existence of a substantive agreement and increasing market uncertainty.
- Intel's Performance Recovery: Intel reported a 7% year-over-year revenue increase to $13.6 billion in Q1, with its data center and AI business growing by 22%, indicating positive progress in its turnaround, although external customers still represent a small portion of its foundry revenue.
- Valuation Challenges: With a market value exceeding $674 billion and trailing revenue of about $53 billion, Intel's stock trades at over 13 times sales, leading analysts to suggest that the current valuation already incorporates optimistic expectations regarding the company's turnaround, necessitating confirmation of any deal with Apple to further boost stock prices.
See More
Analysis of Potential Merger Between SpaceX and Tesla
- Overlapping Projects: SpaceX and Tesla are collaborating with Intel to design AI processors aimed at supporting SpaceX's orbital data centers and Tesla's Optimus robots and autonomous trucks, which will enhance their joint development in the AI sector.
- Investment and Equity Relations: Tesla invested $2 billion in SpaceX's xAI, acquiring about a 1% stake, while SpaceX purchased $697 million worth of Tesla's Megapack batteries, establishing a foundational relationship for a potential merger.
- Merger Complexity: Although Musk is interested in merging the two companies, any merger would require approval from both boards and shareholders, with Tesla shareholders particularly concerned about share conversion and SpaceX's high valuation and losses, which could impact the merger's feasibility.
- Future Outlook: Analysts predict that a merger could occur within a year; however, despite the merger's apparent rationale, SpaceX's current price-to-sales ratio of 130 is significantly higher than the average tech stock's 10, prompting investors to carefully consider whether to buy its shares at this time.
See More
Potential Merger Analysis Between SpaceX and Tesla
- Merger Potential Discussion: The conversation around a merger between SpaceX and Tesla is gaining traction, and while the two companies do not fully align on all plans, their shared goals lend strategic significance to the potential merger.
- Technological Collaboration Projects: Both companies are collaborating with Intel to develop AI processors aimed at supporting SpaceX's orbital data centers and Tesla's robotics projects, which not only enhances the likelihood of technological integration but could also accelerate product development.
- Investment and Equity Relations: Tesla's $2 billion investment in SpaceX's xAI gives it about a 1% stake, while SpaceX's purchase of $697 million worth of Tesla's Megapack batteries establishes a financial interconnection that lays the groundwork for a potential merger.
- Regulatory and Shareholder Concerns: Any merger would require approval from both companies' boards and shareholders, with Tesla shareholders particularly focused on share conversion and SpaceX's high market cap, which could impact the feasibility and timing of the merger.
See More
