Shares of Intel Corp. (Nasdaq: INTC) stock rose over 13% Tuesday on news that Apple is considering using the chipmaker, along with Samsung Electronics Co., to produce processors for its devices in the U.S., Bloomberg reported.
The previously ailing stock has made a turnaround in the last few months, and hit an all-time high on Tuesday, above $100 a share.
Apple (AAPL) shares were up just over 1% as of this writing midday Tuesday, following that report and last week’s strong second-quarter earnings results, which were fueled by “extraordinary demand” for the iPhone 17 lineup. Outgoing Apple CEO Tim Cook called it the company’s “best March quarter ever,” with revenue coming in at $111.2 billion and “double-digit growth across every geographic segment.”
Today’s news could solve the tech giant’s reliance on Taiwan Semiconductor Manufacturing Co. for its chips, opening it up to other options.
On a conference call with analysts on Thursday, Cook said high demand for its products was causing supply constraints for the advanced technology needed to produce its devices, The Associated Press reported. And according to Global Equities Research analyst Trip Chowdhry, Intel’s AI chips are “several years ahead of TSMC’s.”
As for the details of the potential deal, Bloomberg reported Apple “has had early-stage talks” with Intel, and executives have made visits to a Samsung plant in the works in Texas.
The Korea Stock Exchange, where Samsung trades under the ticker 005930.KS (KRX), was closed on Tuesday.
Intel financials
Intel’s gains on Tuesday mark a 55-year-high for the tech stock, which jumped 114% last month and is up a whopping 200% year to date.
Intel has a market capitalization of $542.9 billion as of this writing, beating its previous market cap record of $501.51 billion set on August 31, 2000, per MarketWatch.