Intel Jumps on Apple Chip Deal as Investors Back Its Foundry
INTC surged over 10% on reports Apple will make chips with Intel in the US. Bernstein's Rasgon says the market is betting on the foundry business.
Intel stock went on a tear last week, and the catalyst was hard to miss. Former President Donald Trump posted on Truth Social that Apple had agreed to design and manufacture chips with Intel inside the United States — and traders immediately piled in, sending INTC up more than 10% to close at $133.99. By the time the dust settled, the stock was trading above $140.
Bernstein analyst Stacy Rasgon didn't mince words when he appeared on CNBC to break down the move. His read: this rally isn't really about Intel's core chip business — it's a direct bet on Intel's foundry ambitions. If Apple, one of the most demanding chip designers on the planet, is willing to trust Intel to manufacture silicon, that's a massive credibility signal for Intel Foundry Services.
Read more Prediction Markets Raise Insider Trading Red Flags for Wall Street →
This matters because Intel's foundry pivot has been one of the most skepticism-heavy stories in semiconductors. The company has been burning cash trying to compete with TSMC and Samsung on contract manufacturing. A high-profile Apple endorsement — especially one amplified by a presidential social media post — changes the narrative fast, at least in the short term.
For traders, the question now is whether this is a durable re-rating or a headline-driven pop. The stock moving from sub-$125 to above $140 in a single session is the kind of gap that either gets defended or faded hard. Watch how INTC holds these levels in the coming sessions — that'll tell you whether institutions are adding conviction or just letting retail carry the bag.
Continue reading at Yahoo.
