Intel Stock Surges 250% Amid Apple Foundry Deal Hype

Intel's stock has surged over 250% in just half a year, reaching its highest level in 25 years. The catalyst behind this impressive run-up is the Apple foundry deal, which was publicly confirmed by President Trump on June 18. However, it's essential to note that the agreement doesn't mean shipping chips yet.

Intel and Apple have been in talks for months, with Bloomberg reporting on May 5 that talks had begun. The Wall Street Journal also reported an initial agreement in early May, which led to shares hitting their previous all-time high on May 11. President Trump's social post confirming the deal drove the stock higher by 9% in pre-market trading.

The announcement did come with some substance: Intel's 18A-P process, a potential candidate for Apple chips, is now in risk production, two quarters ahead of forecasted yields. Chief Financial Officer David Zinsner said that current yields are around 90%, which could attract more foundry business customers.

The Trump administration has also claimed a 10% U.S. government stake in Intel, along with Nvidia and Elon Musk's new company, TerraFab, working together on an onshoring effort. However, these claims haven't been fully confirmed.