Intel shares surge 14 per cent to fourth record high on Apple chip deal report
Wall Street Journal report triggers market reaction, with top chipmakers adding nearly $280 billion in value
Intel shares jumped approximately 14 per cent on Friday, marking the company's best trading day since 24 April and reaching a fourth consecutive intraday record high. The significant move in the technology giant's stock price followed a report by the Wall Street Journal indicating that Intel and Apple have reached a preliminary agreement for Intel to manufacture chips for Apple devices.
While the announcement has fuelled investor enthusiasm for Intel's long-running foundry turnaround strategy, specific details regarding the products involved remain unclear. The report describes the arrangement only as preliminary, meaning it has not yet been officially confirmed or finalised by either company. Consequently, the extent of the deal's impact on Intel's broader strategic goals remains speculative based on current market sentiment.
The news contributed to a broader rally across the semiconductor sector, with Intel, Micron, and Nvidia collectively adding nearly $280 billion in market value on the day. This surge reflects a wider trend in the chip industry, with peers such as Broadcom and AMD also posting gains, putting the top gainers on track to add well over $440 billion in market value.
Intel's stock has already recorded a 100 per cent gain in April, its best monthly performance ever, and is currently up 32 per cent in May. These figures see the share price breaking above its previous peak from the year 2000, effectively turning what was once a narrative of recovery into a record-high rally.
Investors are now closely watching for official verification from Intel or Apple to confirm the scope of the potential partnership. Without explicit confirmation, market volatility may persist if the preliminary report is not followed by further details or a formal announcement from the institutions involved.
The report originates from Yahoo Finance, which cites the Wall Street Journal as the source of the information regarding the preliminary agreement between the two technology giants.
