Intel's stock jumped over 9% in premarket trading on Thursday following an announcement by President Donald Trump that Apple has agreed to partner with Intel to design and manufacture chips in the United States [1]. Trump made the announcement on Truth Social, stating, 'Apple has agreed to work with Intel to design and build its Chips in America,' and criticized previous administrations for allowing semiconductor manufacturing to move overseas [1].
Intel has experienced a remarkable turnaround, with its stock surging 464% over the past 12 months and reaching a market capitalization of $608.7 billion [1]. As of the latest premarket session, Intel shares were up 9.4%, while Apple shares rose 0.6% [1]. The company, which had previously struggled with manufacturing delays and lost its dominant market position, has recently attracted significant investments from Nvidia and the Trump administration under the leadership of CEO Lip-Bu Tan, who took over early last year [1].
Trump also highlighted other major developments for Intel, including Nvidia's agreement to build its 'first level Chips' with Intel and Elon Musk's commitment to construct the 'TerraFab,' described as the largest chip factory in the world, designed in collaboration with Intel's technology team [1]. The Terafab project marks the first major external commitment for Intel's foundry business, which had previously only produced chips for its own products [1].
Despite ongoing conflict in the Middle East disrupting supply chains and causing oil prices to rise, the AI boom has continued to support semiconductor stocks. The Nasdaq PHLX Semiconductor Sector Index, which tracks the 30 largest U.S.-traded chip companies, is up 90% so far this year [1].
CONCLUSION
Intel's new partnership with Apple and recent commitments from Nvidia and Elon Musk have significantly boosted investor confidence, as reflected in the company's soaring stock price and market cap. The developments signal a revitalization of U.S. chip manufacturing and reinforce Intel's renewed relevance in the semiconductor industry. Market sentiment remains strongly positive, with the AI boom continuing to drive sector-wide gains.