Intel shares hit all-time high as Apple considers chipmaking partnership
What's the story
Intel's shares have skyrocketed by a whopping 15.4%, hitting an all-time high of $120 per share. The surge comes after reports that Apple is considering a partnership with Intel and Samsung for chip manufacturing in the US. The collaboration, still in its early stages, could break Apple's long-standing dependence on TSMC amid growing product demand.
Strategic moves
Apple may break its TSMC dependency
Apple executives have visited a Samsung plant under construction in Texas. They have also held preliminary talks with Intel about possibly using its chipmaking services. However, it's important to note that these discussions are still in their early stages and no orders have been placed yet. If finalized, this partnership would be a major shift from Apple's traditional manufacturing strategy of working closely with Taiwan Semiconductor Manufacturing Company (TSMC).
Foundry investments
Intel's foundry investments and Apple's current chip manufacturing
Intel has made huge investments in its foundry, or chip-manufacturing unit, to compete with Taiwan Semiconductor Manufacturing. However, it has yet to secure any major external client for its technology except for a partnership with Elon Musk's Terafab. The deal is aimed at serving Tesla and other companies associated with Musk. Meanwhile, Apple's iPhone 17 family chips are manufactured using a variant of TSMC's technology used in many advanced AI chips.
Market performance
Intel's stock performance and market capitalization
Intel's shares ended last month with a mighty 114% gain, its biggest monthly rally since joining the NASDAQ almost 55 years ago. The rally has not only given investors huge returns but also revived the AI trade that pushed the the index to multiple record highs. On Tuesday, taking into account the intraday high, Intel's market capitalization rose to $547 billion.