SANTA CLARA, Calif. — Intel Corp. shares climbed sharply Monday, closing at $129.44, up $4.52 or 3.62%, as investor optimism swelled over a potential landmark manufacturing deal with Apple and continued strength in artificial intelligence-driven demand for its chips.

Executives at Silicon Valley chip maker Intel say 'fluid' US trade policies and regulatory moves have increased the chances of economic slowdown
Intel Stock Surges 3.62% to $129.44 on Apple Deal Hopes and AI Momentum AFP

The semiconductor giant's stock has been one of the market's biggest winners in 2026, soaring more than 190% year-to-date and hitting multiple all-time highs in recent weeks. Monday's gain extended a remarkable rally fueled by better-than-expected quarterly results, strategic foundry wins and renewed confidence in Intel's turnaround under CEO Lip-Bu Tan.

After-hours trading saw modest profit-taking, with shares dipping 0.62% to $128.64. Yet the day's performance underscored Wall Street's growing conviction that Intel is regaining ground in the fiercely competitive chip sector.

The latest catalyst centers on reports that Intel and Apple have reached a preliminary agreement for Intel to manufacture processors for certain Apple devices. The Wall Street Journal and other outlets detailed negotiations spanning more than a year, with U.S. government involvement helping facilitate the pact. Intel's foundry business, long a money-loser, could gain a major external customer in one of the world's most valuable companies.

Analysts called the potential Apple deal transformative. It would validate Intel's 18A manufacturing process and boost its external foundry ambitions at a time when the company has secured commitments from Microsoft, Amazon and others. The U.S. government, which converted roughly $9 billion in CHIPS Act grants into an approximately 10% ownership stake, reportedly played a behind-the-scenes role in bridging the sides.

Intel's data center and AI segment delivered standout growth in the first quarter. Revenue there jumped 22% to $5.1 billion, driven by strong demand for Xeon processors and Gaudi AI accelerators. Overall Q1 revenue reached $13.6 billion, beating estimates, while adjusted earnings per share hit $0.29 against expectations of just $0.01.

Chief Executive Lip-Bu Tan highlighted "unprecedented" AI demand and progress on Intel's process technology roadmap. The company guided for solid second-quarter revenue and has now beaten Wall Street forecasts for six straight quarters. Gross margins also improved markedly, signaling operational discipline amid the recovery.

The rally has pushed Intel's market value well above previous peaks from the dot-com era. Shares have more than quadrupled from 52-week lows hit in 2025, making the stock the top performer in the PHLX Semiconductor Index this year.

Beyond Apple, Intel has forged ties with Elon Musk's xAI, Tesla and SpaceX through the Terafab super-chip project. It repurchased full control of its Fab 34 facility in Ireland for $14.2 billion, a move seen as a vote of confidence in its manufacturing future. Collaborations with cloud giants and progress on next-generation Panther Lake processors have further lifted sentiment.

Wall Street has responded with upgraded price targets. HSBC raised its rating to buy with a $95 target earlier in the spring, while other firms have lifted forecasts amid the momentum. Yet some skeptics caution that the stock's rapid ascent — up more than 400% from recent lows — leaves it vulnerable to pullbacks if execution falters.

Intel's foundry business remains in investment mode, with heavy capital spending required to compete against TSMC and Samsung. Losses in that segment have narrowed, but analysts say consistent external wins like the rumored Apple deal are essential for long-term profitability.

Monday's trading volume exceeded 178 million shares, well above average, reflecting broad participation. Options activity showed heavy call buying, with traders betting on further upside. The stock has posted strong gains in seven of the past eight sessions.

President Donald Trump has publicly praised Intel's progress, noting the company's role in bolstering U.S. semiconductor leadership. The administration's support through grants and policy has been credited with aiding Intel's resurgence.

Broader market context helped. Semiconductor stocks benefited from positive sentiment around AI infrastructure spending. Peers like AMD and Nvidia also traded higher, though Intel's percentage gains stood out. The Nasdaq Composite and S&P 500 notched records amid cooling inflation hopes and strong corporate earnings.

For longtime Intel investors, the surge marks a stunning reversal. The company spent years losing market share in PCs and data centers while struggling with manufacturing delays. Under new leadership and with fresh capital, Intel has stabilized its core businesses and positioned itself as an AI contender.

Retail investors have piled in. Social media platforms buzzed with screenshots of portfolio gains and debates over whether the rally has further to run. Some traders warned of overvaluation, citing a forward price-to-earnings multiple that has expanded rapidly. Others pointed to Intel's improving fundamentals and massive addressable market in AI as reasons for continued optimism.

Looking ahead, Intel's second-quarter guidance and updates on the Apple negotiations could provide the next catalyst. The company is scheduled to host an event showcasing its latest AI PC offerings later this month. Any positive developments on foundry customers would likely spark additional buying.

Risks remain. Geopolitical tensions, supply chain issues and intense competition could pressure margins. Intel must deliver on its 18A process ramp and control costs while investing aggressively. A broader market correction in tech stocks could also trigger profit-taking.

Still, the narrative has shifted decisively. Once viewed as a fading giant, Intel is now portrayed as a comeback story central to America's chip ambitions. Monday's 3.62% gain, while modest by recent standards, reinforced the momentum that has made INTC one of 2026's most compelling investment tales.

As trading closed, analysts remained largely bullish. Consensus price targets have climbed into the $100-$150 range, with some bulls envisioning $150 or higher by year-end if major deals materialize and AI tailwinds persist. For now, investors are riding the wave — watching closely as Intel attempts to turn hype into sustained leadership.