Intel Shares Soar After Trump Announces Apple Chip Deal

Intel's stock experienced a significant jump on Thursday following President Trump's announcement via social media that the semiconductor giant would collaborate with Apple to design and manufacture chips within the United States. The news sent Intel's shares up by $12.72, or 10.5%, reaching $133.82 shortly after the market opened.

President Trump emphasized the financial success of the U.S. government's investment in Intel, noting that the company's valuation has soared from approximately $100 billion in August to around $600 billion currently. "Nine months, and they've increased in value over HALF A TRILLION DOLLARS!" Trump posted. "America's stake is now over 60 billion dollars." With its 10% stake, the U.S. government is now Intel's largest shareholder, surpassing institutional investors like Vanguard and BlackRock.

This potential partnership could be a strategic move for Apple, allowing it to diversify its manufacturing base and reduce its reliance on Taiwan Semiconductor Manufacturing Company (TSMC), its primary overseas chip supplier. Wedbush Securities analyst Dan Ives noted in a research report that this preliminary deal, which follows over a year of negotiations, represents a significant step in Apple's ongoing efforts to diversify its supply chain across various regions, including Vietnam, India, and the U.S.

While Apple and Intel have declined to comment on the potential agreement, the announcement comes as Apple CEO Tim Cook recently indicated plans to increase product prices to offset rising costs for memory and storage chips, driven by demand from AI companies. The collaboration with Intel could reshape the semiconductor landscape and strengthen domestic chip production capabilities.

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Nine months, and they've increased in value over HALF A TRILLION DOLLARS! America's stake is now over 60 billion dollars.