Intel Shares Soar on Reports of Apple Investment Talks

Intel Corporation, which has been struggling lately, had a dramatic turn in its stock price as it increased by almost 10 per cent on September 26, 2025, and its stock price closed at 33.22 at the end of a day characterised by high trading volumes.

It was accompanied by the rally reaching the highest close of the company since July 2024 due to the reports that Apple Inc. is already having preliminary talks with the idea of investing in the revival efforts of Intel.

This news is timely considering Intel has been battling with production delays, tough competition, and a changing artificial intelligence chip demand environment. With the possibility of a tech titan alliance being digested on Wall Street, investors are already speculating on the outcomes of the alliance on the future of chipmaking and tech in general.

It was announced on a Thursday evening, first in financial circles, so it appeared to be a shocking announcement in the market. Intel shares had a slight increase, yet they accelerated swiftly as the talks were announced.

The stock gained more than 6 per cent by midday and continued its rise during the afternoon, outperforming other major indexes that were struggling in the face of mixed economic data. The Dow Jones Industrial Average fell a little, but ended down 0.38% and the S&P 500 slipped up 0.06%. Nasdaq, which has a large concentration of tech, performed better, and yet it lagged behind the bombastic performance of Intel.

The Spark: Whispers of a Strategic Lifeline at Apple

At the centre of the storm is the report about the initial discussions between Intel and Apple, with the latter contemplating a multibillion-dollar investment to strengthen Intel’s foundry plans.

According to sources familiar with the issue, Apple, which has previously used Intel processors in its Mac line and is now switching to its own silicon chip, sees an opportunity to forge a stronger relationship in the face of global supply chain pressures.

This is not only financial support, but it can be a joint effort to boost the production capacity of Intel, which is at a standstill compared to its competitors, such as Taiwan Semiconductor Manufacturing Company (TSMC).

Intel has been vocal regarding its desire to have partners to speed its foundry business, which it intends to create advanced chips for third-party clients by 2027. The U.S government has already invested in the company through the CHIPS Act, but the private sector investments can give the company the agility it requires to compete.

This interest coincides with Apple’s strategy to diversify suppliers and invest in U.S. production, particularly as tensions rise between China and the U.S., which intend to boost their geopolitical power. The hypothetical action of Apple to follow would indicate a shift in which Big Tech is focusing resources to resist an international takeover after Nvidia recently invested 5 billion dollars in an equivalent chip project.

This irony and possible synergy did not go long unnoticed by analysts. When Apple decided to abandon Intel in favour of its own chips, it was a blow, though this might be the full-circle moment, according to one observer of the market.

The discussions are said to be of a preliminary nature where no actual accord was on the cards, but the mere mention of a giant with plenty of cash, such as Apple, which boasts of more than 160 billion in reserves in its coffers, was enough to spark off investor confidence.

Intel, Rocky Road: Domination to Desperation

One has to go back to the turbulent recent history of Intel to get a glimpse of the magnitude of this rally. Intel, which was once the unchallenged leader in the PC chip industry, has fallen behind in mobile computing and AI.

Its production, which had not improved since 10nm years earlier when rivals had reached 3nm (and more), cost it contracts and tarnished its image. The company has reported its first loss in decades in 2023, which led to a radical change after the new CEO, Pat Gelsinger.

The plan created by Gelsinger under the title of IDM 2.0, which includes design, manufacturing and foundry service, promised a comeback, but execution has been a nightmare. Sluggish results have been burdened by delays in Ohio and Arizona fabs and poor demand for traditional PCs.

In July 2025, Intel reported flat revenue of $12.9 billion in the second quarter, which was below expectations, and the stock went down by 26 per cent in one day. The bottom of shares was reached earlier this year, below 20, which is many times lower than the 60 that were reached in 2021.

However, there are light rays of hope that have come out. The CHIPS Act channelled $8.5 billion in grants and 11billion in loans to Intel to finance expansions that would provide 20,000 jobs. Custom chip partnerships with Microsoft and Amazon Web Services have been boosting spirits, too.

And now, this Apple overture comes because Intel is now saying it is making strides with its 18A process node, to be manufactured next year. The 52 per cent increase in the stock, since marking its lowest point throughout the year, suggests a change of narrative: the stock is not a has-been anymore, but it could be a phoenix.

Apple’s Calculus: Why Now?

In the case of Apple, the reasons are complex. Selling their M-series chips has made the company successful, but depending on TSMC to manufacture the chips places the company in a vulnerable position.

The domestic substitutes are attractive because of the increasing cost of labour in Taiwan and U.S. export restrictions on high-technology equipment to China. Investment in Intel would have ensured priority with the brand new foundry capacity so that the next generation of iPhones, Macs, and even other dream devices can be produced reliably in the future.

Besides, Apple is entering the AI business- evidenced by the recent Apple Intelligence, which requires more computing resources. Although it manufactures its own neural engines, it continues to outsource fabrication.

Partnering with Intel would allow fast-tracking of joint R&D, perhaps even a rekindling of the legendary association between the two during the PowerPC era. Critics have doubts about the fit, though: the secretive Apple culture is incompatible with the more open Intel foundry model, and previous integrations have not always proceeded without incident.

Still, the market sees upside. Apple stock has gone up by 1.2% by sympathy trading, with investors betting on the benefits of the ecosystem. Other rivals in the chip industry, such as AMD and Qualcomm, also recorded progress, which is an indication of the spillover effects of Intel’s revival.

Extended Market Effects and Investor Feeling

The Intel spike was not a one-off event, but heightened a wary optimism in technology in the face of more general economic crosswinds. Advance estimates show that the U.S. GDP grew at a strong annualised rate of 3.2% in Q3; however, increased jobless claims undermined the optimism.

Federal Reserve Chairman Jerome Powell also contributed to the fray when he said he liked steady rates, with market betting an 75 per cent probability of a 25-basis-point cut in November. Europe STOXX 600 rose a little on its hopes of a similar rise, driven higher, whereas Asia had mixed markets following U.S. tariff threats on pharmaceuticals.

At home, pharmaceutical and automotive stocks garnered interest, while semiconductors made headlines. Nvidia, which just went on a splash of investment, went up 2% but TSMC ADR was up 1.5% even though rumours have it that Intel is also interested in its support.

Retail investors crowded in through apps such as Robinhood, and Intel’s options volume increased 300 per cent. Preliminary filings indicated that hedge funds are raising stakes, with BlackRock adding 5 million shares last quarter. Sentiment statistics may have reached a bullish point with the AAII survey coming in at 45 per cent optimism, the best in months.

Future Outlook: Research and Business Threats and Opportunities

Questions are raised as the dust settles. Will Apple and deal be a deal, and at what price? The market cap of Intel is at about 140billion compared to highs of 250billion, thus an easy target, but also raising the dilution factor in the eyes of shareholders. Regulatory challenges such as antitrust challenges may make the situation tricky, particularly as the U.S. pressures on onshoring.

In the case of Intel, it all depends on execution. The company needs to be able to deliver on 18A yields and secure additional foundry wins beyond the current pilots. This pivot has been at the heart of the tenure of Gelsinger, and a failure would herald worse times. Optimists cite the cash hoard of Intel, at 15 billion dollars, and the stock of patents.

It is in the bigger picture that this saga highlights the consolidation of the chip industry. With AI consuming additional silicon, alliances such as Intel-Apple may transform supply chains in new ways, promoting innovation and reducing risks. To the investors, it is a big bet: The forward P/E of Intel (25) would seem rational in case the growth resumes, and the volatility continues.

Intel is coming back to life as the month of September 26 approaches. It doesn’t take a flashy surge or the start of a new era; it is certain that, in the competitive environment of semiconductors, survival requires drastic actions–at times, even improbable allies. The market will be eagerly monitoring and will recompense or penalise the next installment in this technology thriller.