It's a good time to be an Intel (INTC +13.96%) shareholder. The stock is up 175% this year, with most of those gains coming recently, driven by Intel's strong first-quarter 2026 earnings report.
As of 12:23 p.m. ET, Intel's stock traded nearly 13% higher on a Bloomberg report, suggesting that the company is in talks with Apple to become the consumer tech giant's main chip manufacturer for Apple's U.S. devices. Apple is also reportedly in talks with Samsung as well.
While media reports say no deal has been finalized, it could represent a big step for Intel, which has made its chip manufacturing capabilities a focal point of its turnaround plan but is still seeking additional major partnerships. Apple would be a huge step in this direction.
Should you buy Intel stock after this incredible run?
Image source: Intel.
Talks may be pretty far along
Based on the market's reaction, investors seem to think a partnership between Intel and Apple is quite possible, which makes sense given past reporting.
"... We think Apple is much farther along than just "discussions" with Intel on foundry," Creative Strategies' CEO Ben Bajarin wrote on X this morning.
This isn't the first time Apple and Intel have been linked. Last September, Bloomberg reported that Intel had asked Apple to invest in the company when Intel had been struggling and looking for partners to help revamp its business.
Last year, during the height of President Donald Trump's tariff saga, Apple came under significant pressure for having most of its manufacturing in China, India, and Vietnam. The company has had a long partnership with Taiwan Semiconductor for sourcing its chips.
NASDAQ: INTC
Key Data Points
To appease the Trump administration, which holds a stake in Intel, Apple's CEO Tim Cook made a $600 billion commitment to U.S. manufacturing and announced the American Manufacturing Program (AMP), dedicated to bringing more of its production to the U.S.
Partnering with Intel would help Apple on multiple fronts by placing at least some of its chip production in the U.S. and by aligning Apple with a company the U.S. government has a vested interest in.
Should you buy the stock?
Intel stock has come alive this year, largely as central processing units (CPUs) have suddenly become a big part of the artificial intelligence story. Until recently, most of the emphasis had been on graphics processing units (GPUs), which offer parallel processing capabilities and are viewed as the key intelligence component of AI.
Intel has long been a leader in designing and manufacturing CPUs, which have been used in more traditional computers and cellphones. But the rising popularity of agentic AI has brought CPUs back into the limelight. The CPUs serve a key role in orchestrating tasks for AI agents, whether feeding data or interacting with files on a computer.
Intel CEO Lip-Bu Tan believes the trend will continue.
"In recent months, we have seen clear signs that the CPU is reinserting itself as the indispensable foundation of the AI era," he told Wall Street analysts on the company's recent earnings call. "The CPU now serves as the orchestration layer and critical control plane for the entire AI stack."
Given the stock's monster run, investors may want to let it take a breather.
CPUs are becoming an exciting part of the AI trade, but right now, it's probably best to build the position slowly, dollar-cost average, and plan to hold the position long term. Patient investors can also wait for dips to try and get in at a better entry point.
