Apple reaches foundry deal with Intel $INTC — stock jumps 17% as IFS lands marquee customer

Apple and Intel ($INTC) have reached a preliminary agreement for Intel's foundry division (IFS) to manufacture chips for Apple devices, the Wall Street Journal reported on May 8, citing people familiar with the matter. Intel shares jumped 17% on the news, capping a week in which the stock rose double digits.

The deal covers Intel Foundry Services producing chips — not a return of Intel's x86 CPU architecture to Apple hardware. Apple will continue designing its own silicon (A-series and M-series in ARM architecture) but would tap Intel's fabs as a manufacturing partner, diversifying away from near-exclusive reliance on TSMC. Specific chip categories and production volumes were not disclosed.

According to the Journal, intensive talks between the two companies have been underway for more than a year, and a formal deal was reached in recent months.

For Intel, landing Apple as a foundry customer represents a pivotal validation of its manufacturing turnaround. Intel Foundry Services has struggled to win significant external customers since launching in 2021. Apple — the world's most valuable company — would immediately become IFS's most credible public reference customer, potentially opening the door to further tier-1 design wins.

The broader chip sector reaction: Micron surged nearly 38% on the week amid a global memory shortage, AMD closed sharply higher, and Wall Street described a "changing of the guard in AI" as money rotated from Nvidia toward CPU and memory names. Intel's weekly gain has now erased much of its earlier-year losses.

Key items to watch: IFS production ramp timeline and whether Apple confirms the arrangement publicly. Risk: the deal remains "preliminary" per the Journal and could still be restructured before production begins.

Not investment advice. Verify all figures with primary sources before acting.