Intel Breaks Out as Microsoft Orders 18A Capacity and Apple Considers Foundry Partnership

Intel's stock price has been on the rise after breaking out of its EMA50 at $110.63 on elevated volume. The company's foundry business, led by CEO Pat Gelsinger, has been gaining credibility with significant orders from Microsoft and discussions with Apple about building processors in the US.

The 18A manufacturing technology, which is expected to achieve yields of 55-75%, has been a crucial factor in Intel's turnaround. Microsoft ordered 18A capacity for its own use, demonstrating that the technology can produce chips at competitive levels. This move signals a shift from relying on single vendors like TSMC and represents an opportunity for Intel to de-risk supply chain dependency.

Apple's consideration of Intel as a foundry partner over TSMC is also significant, as it reflects interest in diversifying its supply chain and ensuring a viable alternative to the leading-edge process. The ability to design and manufacture chips within the US may have export control and supply chain security considerations. Apple is reportedly evaluating Intel 18A for future chipsets, suggesting that the company no longer believes Intel's yield improvements are just sales pitches.

The Data Centre and AI business saw a 22% growth to $5.1 billion in Q1 2026, driven by the Gaudi 3 AI accelerator and Xeon 6 processors. This internal validation plays out in tandem with the foundry wins, providing multiple levels of validation for Intel's turnaround narrative.

While there are still risks associated with the foundry business, such as execution timelines on yield improvements continuing at the pace needed to convert design wins into volume production, the current momentum is driving the company's turnaround thesis forward. The technical foundation for this growth lies in the 55-75% yield rate on 18A Panther Lake chips.