Intel Shares Surge on Potential Manufacturing Deals with Tech Titans

Intel US4581401001

A report suggesting that industry leaders Nvidia and Apple are considering utilizing Intel's chip fabrication services sparked a dramatic rally for Intel's stock on Tuesday, sending shares soaring by more than 11 percent. This development presents a potential strategic opening for the semiconductor company, which had recently issued a disappointing forecast.

According to a January 28th DigiTimes report, both technology giants are evaluating Intel Foundry Services for future production needs. The report indicates that Nvidia is planning to allocate approximately 25 percent of the packaging capacity at Intel's facility in New Mexico for its "Feynman" GPU architecture, starting in 2028. Separately, Apple is reportedly in discussions concerning the manufacture of its entry-level M-series processors.

The initial focus for these partnerships would be on "low-volume, less critical products." This interest is driven by several key factors: U.S. manufacturing incentives established during the Trump administration, the threat of tariffs on semiconductors produced outside the country, and ongoing capacity constraints at the primary industry foundry, TSMC, in Taiwan.

Rally Contrasts with Previous Weak Guidance

The recent share price advance marks a sharp reversal from the prior week's performance. On January 22, Intel's stock had plummeted by roughly 13 percent. The decline followed the company's first-quarter 2026 guidance, which projected revenue in a range of $11.7 to $12.7 billion and approximately breakeven non-GAAP earnings per share. Company leadership attributed the subdued outlook to significant supply chain bottlenecks.

This stood in contrast to the company's fourth-quarter 2025 results, which exceeded market expectations. Intel reported revenue of $13.7 billion and non-GAAP earnings per share of $0.15, both figures surpassing analyst estimates.

Market Sentiment Shows Signs of Improvement

In a notable show of confidence, UBS analyst Timothy Arcuri raised his price target for Intel twice during January, most recently lifting it from $49 to $52, while maintaining a Neutral rating. Furthermore, as reported by MarketWatch, Intel's Chief Financial Officer, David Zinsner, purchased company shares following the recent price decline.

The discussions with Nvidia and Apple could signal a pivotal moment for Intel's foundry strategy. The company has long sought to position itself as a viable alternative to TSMC, heavily promoting its advanced 18A and 14A process technologies. Nvidia had already demonstrated support in September 2025 with a $5 billion investment in Intel. Whether these talks evolve into long-term manufacturing contracts remains to be seen. The coming quarters will be critical in determining if Intel can successfully translate its technological ambitions into tangible commercial success.

@ boerse-global.de | US4581401001 INTEL