A Potential Turning Point for Intel: Apple Deal Sparks Investor Optimism

After years of being counted out, shares of semiconductor giant Intel have surged with renewed vigor, recently posting a dramatic single-day gain exceeding 10%. This rally is fueled by market speculation that the company may secure a major, multi-million dollar manufacturing contract with Apple. The potential partnership carries significant irony, as Apple was the client that famously phased out Intel’s chips from its Mac computers. This development raises a pivotal question for investors: is this the beginning of a genuine comeback story for Intel, or merely a fleeting spike of optimism?

Financial Performance Shows Signs of Firming

Beyond the Apple-related rumors, Intel’s latest financial reports provide their own grounds for cautious optimism. The company’s third-quarter results revealed a 3% year-over-year revenue increase to $13.65 billion, surpassing analyst expectations. Earnings per share for the period came in at $0.23. While these figures are not record-breaking, they are being interpreted by some as an indication that the firm’s most challenging period may be in the past.

Management’s guidance for the current fourth quarter projects earnings per share of approximately $0.08. Although this forecast appears modest, in the context of Intel’s recent volatile performance, even stabilized, moderate growth is viewed by market observers as a positive step.

The Foundry Strategy and the Apple Speculation

At the heart of Intel’s potential resurgence is its ambitious foundry strategy—the plan to manufacture chips for other companies. Securing Apple as a client for its entry-level M-series processors would represent far more than a lucrative deal; it would serve as a powerful validation of this entire strategic pivot. Such a partnership would demonstrate tangible progress in Intel’s race to regain its competitive edge in advanced semiconductor manufacturing.

Should investors sell immediately? Or is it worth buying Intel?

For years, Taiwan Semiconductor Manufacturing Company (TSMC) has dominated this arena. Intel is banking on its upcoming 18A process technology to finally achieve technological parity. The seriousness of Intel’s commitment is underscored by its existing partnerships with firms like Nvidia and by financial backing from the U.S. government and SoftBank.

Wall Street Maintains a Cautious Stance

Despite the enthusiastic market reaction, a note of skepticism prevails among financial analysts. The predominant rating on Intel stock remains “hold,” with the average price target sitting near $35—below the stock’s current trading level following its recent surge. The implied message from the analyst community is that the explosive rally may have already overshot the near-term fundamentals.

This caution is not without foundation. Intel continues to trail key rivals in terms of profit margins and certain technological benchmarks, and the competitive landscape remains fierce. Whether the prospective Apple deal marks a definitive turning point or simply a temporary peak will only become clear in the coming quarters. For now, Intel shares represent a highly speculative investment, offering substantial potential reward alongside considerable risk.