Intel (INTC) stock soared 10% on Thursday after President Trump posted on Truth Social that Apple (AAPL) has agreed to work with the chipmaker to build its processors.
Intel had no comment on the post
Trump’s statement follows an earlier report from The Wall Street Journal that the two companies had reached a preliminary agreement under which Intel would manufacture chips for the iPhone maker. In a note to investors, Bernstein analyst Stacy Rasgon speculated that the tie-up will likely revolve around “low-volume, less important parts,” adding, “Intel will of course have to prove their mettle before being granted more substantial wins, but the first step is always the hardest, so at least they appear to be taking that step.” Apple previously used Intel’s chips in its laptops and desktops, but abandoned Intel to design its own custom chips. The news comes after The Information reported that Intel will build 3 million Tensor Processing Units (TPUs) for Google and that Nvidia is exploring using Intel to fabricate its own processors.
Earlier this week, Intel announced that its latest 18A-P processor node has entered initial production, a step toward full volume production. The various moves are a part of Intel’s broader turnaround effort that began under previous CEO Pat Gelsinger. Current CEO Lip-Bu Tan has continued that work, cutting costs and driving the company’s foundry arm to reach deals to produce chips for third-party customers.