Intel surges after claims of an Apple partnership, as investors react to President Trump’s announcement of a reported U.S. chip manufacturing agreement between Intel and Apple.
Intel Stock
Intel’s stock went up fast on Thursday before the market even opened. This happened after President Donald Trump said that Apple had agreed to work with Intel to design and make computer chips in the United States. Investors got really excited about this news. It made Intel’s stock go up by about 9% before the market opened.
Trump posted on Truth Social that this deal is part of a plan to make more semiconductors in the US. He said that the country has been relying too much on other countries to make these chips, and it is time to start making them here. Trump wrote, “Apple has agreed to work with Intel to design and build its chips in America.”
Even though this news made a splash in the stock market, Intel, Apple, and the White House did not say much more about it right away. News outlets like CNBC and CNN tried to get information from the companies, but they did not get much.
Intel Stock Keeps Going Up
This news adds to how well Intel’s stock has been doing. For a time Intel was not doing great and was losing market share. Now the company is doing much better.
Over the year, Intel’s stock has gone up by about 464%. This makes the company worth around $608.7 billion. After Trump’s announcement, Intel’s stock went up another 8.8%. Apple’s stock went up a little bit, about 0.6%.
People who invest in the stock market are starting to think that Intel is a bet again. They like the plan that Intel has, and they think the company can be a big player in the chip industry again.
Intel's Road to Recovery
For a while Intel was struggling to keep up with companies in the semiconductor industry. The company had problems making chips on time. It was hard to compete with other companies.
Things started to get better when Lip-Bu Tan became the CEO of Intel. Under his leadership Intel has been able to get more people interested in the company. It has been working to make more chips.
Trump said that his administration helped Intel, and that is why the company is doing better now. He said, “I decided to help Intel because we need to design and build our chips here in America.”
Trump Talks About Deals
In the same post on Truth Social, Trump said that Nvidia had agreed to make its chips with Intel. He said, “First we helped bring in Nvidia, and they agreed to build their chips with Intel.”
Trump also said that Elon Musk had agreed to build a chip factory with Intel. This factory is called TerraFab. It would be the biggest chip factory in the world.
If these deals happen, it could be a change for Intel and the other companies involved. So far the companies have not said much about these plans.
Apple Might Make Chips in the US
If Apple starts working with Intel to make chips in the US, it could be a deal for Apple.
Now Apple makes most of its chips in Taiwan. If it starts making chips with Intel in the US, it could help Apple make its products in more places and not rely so much on other countries.
This news comes at a time when it’s hard to get the chips that companies need to make their products. This is because a lot of companies are using these chips to make intelligence products.
Tim Cook Says Prices Might Go Up
This week Apple CEO Tim Cook said that the company might have to raise its prices. This is because it is getting more expensive to make the chips and other parts that go into Apple’s products.
Cook said that Apple has been trying to absorb these costs, but it is getting harder to do. He said, “We’re doing our best to mitigate the increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”
This just shows how much the cost of chips is affecting the technology industry. Intel and Apple are two of the companies in this industry, and they are both feeling the effects of these rising costs.