Intel shares jumped as much as 10% on Friday, marking the stock's fifth consecutive session of gains, after analyst Ming-Chi Kuo reported that Apple is on track to have Intel manufacture its lowest-end M-series chips using the 18A process as early as mid-2027. The potential deal would involve production of approximately 15-20 million units annually for MacBook Air and iPad Pro devices, representing a cautious diversification of Apple's supply chain away from sole reliance on Taiwan Semiconductor Manufacturing Company.
The rally came despite ongoing legal tensions with TSMC, including reports of a raid on an Intel executive's home in Taiwan related to allegations of stolen technology. Investors appeared to look past the litigation drama, focusing instead on the prospects of securing Apple as a foundry customer, which analysts described as having improved significantly.
Intel led chip stocks higher on Friday, helping drive the broader S&P 500 to gains and turning the index positive for November. The stock outperformed competitors on heavy trading volume, with options activity notably elevated. The potential Apple partnership, while modest in scale compared to TSMC's high-end chip production for Apple, would mark a significant validation of Intel's foundry ambitions and its advanced 18A manufacturing process.