Intel has reached a day that most companies only dream of. Shares of the chipmaker rose between 10% and 19% on May 8, 2026, after reports surfaced that Intel Foundry had reached a tentative agreement to make processors for Apple devices.
The bull market was not confined to a single ticker. Intel’s explosive move helped push both the S&P 500 and Nasdaq to record highs, with solid earnings from the AI chip maker providing further fuel for the overall market rally.
The deal that changed everything (probably)
This is not an agreement in the traditional sense. The agreement between Intel and Apple reportedly follows more than a year of negotiations, but details such as which chip types will be manufactured, how much is expected to be produced, and when production will actually begin are still unclear. Based on the current schedule, shipping before 2027 seems unlikely.
Apple’s motivations are straightforward. The company aims to diversify its chip supply chain away from over-reliance on Taiwanese semiconductor giant TSMC, which makes most of the world’s most advanced chips. Ongoing chip shortages are making reliance on a single source increasingly uncomfortable for companies that ship hundreds of millions of devices annually.
Bloomberg and Reuters previously reported that Apple is exploring manufacturing options with Intel and Samsung as possible replacements for TSMC. This preliminary agreement suggests that these explorations are progressing beyond the tire-kicking stage.
Intel’s foundry bet gains maximum support
For Intel, acquiring Apple as a foundry customer would be the crown jewel in an ambitious but questionable turnaround strategy. The company is actively courting major technology companies to use its manufacturing capabilities, with existing foundry customers reportedly including Microsoft, Amazon, Tesla, and the U.S. government.
Intel’s foundry division is projected to reach breakeven by 2027. Add Apple to the customer roster, and that goal looks pretty achievable.
Intel watched its manufacturing edge decline for years while TSMC and Samsung moved ahead. Under the “IDM 2.0” strategy launched in 2021 by CEO Pat Gelsinger, Intel aimed to attract external customers to replace more than $7 billion in lost foundry revenue by 2025.
Wider market conditions further expanded Intel’s influence. Strong earnings reports from companies in the AI chip sector have already pushed the index higher, contributing to record highs for both the S&P 500 and Nasdaq.
What this means for investors
The agreement between Intel and Apple is tentative. Chip type is not specified. Volume is uncommitted. No timeline has been set.
Regardless of the outcome of this particular deal, the trend toward diversification in the semiconductor supply chain is real and permanent. Apple’s willingness to explore alternatives to TSMC reflects structural changes that benefit any company with advanced manufacturing capabilities. Intel, Samsung, and foundry startups all stand to benefit as big tech companies reduce concentration risk.
