Shares of Intel surged over 8% on Tuesday after analyst Ming-Chi Kuo of TF International stated on X that the company is expected to begin manufacturing Apple’s M series chips for the MacBook Air and iPad Pro as early as 2027—a move that would mark a significant endorsement following the company’s aims to expand its third-party chip manufacturing business.
Currently, the segment trails behind Intel’s core product business, with revenues of $4.2 billion versus $12.7 billion in the most recent quarter, and relies primarily on producing Intel’s own chips.
Although Kuo noted that this collaboration wouldn’t yet enable Intel to directly compete with Apple’s current chip supplier, TSMC, it would demonstrate Intel’s capability to serve top-tier clients. The report stated that Apple intends to use Intel’s forthcoming 18A-P process technology, which promises improved performance over the existing 18A process.
Previously, Apple sourced chips for its laptops and desktops from Intel before transitioning to its in-house designs made by TSMC. Under the new arrangement, Apple would continue to design the chips while Intel provides the manufacturing technology.
Intel’s stock price has climbed 116% year to date and 113% over the past twelve months, following leadership changes that saw former CEO Pat Gelsinger replaced by Lip-Bu Tan. The company has received substantial support from notable investors, including the U.S. government—which now holds a 10% stake—despite earlier concerns from President Trump regarding Tan’s investments in Chinese tech firms.
Financial backers such as Nvidia and SoftBank have also invested a combined $7 billion in the chipmaker through their own agreements. Nevertheless, Intel continues to lag behind rival manufacturers Nvidia and Advanced Micro Devices in the intensifying competition to supply chips for artificial intelligence.
Despite falling behind in the AI space, Intel has recently achieved some milestones, such as shipping chips based on its 18A technology after multiple delays. However, strategic missteps in the past have led to eroding market leadership in consumer and data center CPUs, as AMD gains ground.
AMD CEO Lisa Su signaled her expectation that the company would command 50% of the data center CPU market share revenue within three to five years, and over 40% of the client revenue market share, including chips for consumers and gaming.
