Intel shares rose about 9% in premarket trading on Thursday following new news about a major chip deal. The rise comes after Donald Trump said Apple has agreed to work with Intel to design and manufacture its chips in the United States.
Trump made the claim in an article published in Truth Social, in which he promoted the idea of bringing chip production back to the United States. Trump criticized past leadership, saying: “The stupid president took our economy for granted.” He claimed it allowed other countries to achieve semiconductor leadership, saying they “allowed Taiwan and other countries to steal our semiconductor factories.”
Intel and Apple chip deal
Trump said Apple and Intel will now work together to design and manufacture chips in the United States, rather than overseas.
Intel shares rose about 8.8% in pre-market trading, while Apple also edged up about 0.6%. Thursday’s move comes after Intel shares had risen strongly over the past year on improving investor sentiment. After the recent stock market rally, Intel’s market capitalization has reached approximately $608.7 billion.
Intel Stock Growth
According to CNBC, Intel’s stock price has soared about 464% in the past 12 months, showing a significant recovery from previous difficulties. After years of production delays and weak performance, the company lost its leadership position in the semiconductor industry. For years, Intel has lagged behind in the artificial intelligence boom while rivals have made faster progress in advanced chip technology.
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Intel’s foundry business initially focused solely on making chips for itself rather than for outside customers. CNBC reported that Intel CEO Lip-Bu Tan, who took office early last year, helped revive interest in the company. His leadership has attracted attention and investment from major companies like Nvidia, as well as support from the Trump administration
Trump said on X, “So I decided to help Intel because we need to design and manufacture our chips in the United States.” He further claimed Elon Musk Agreed to develop “TerraFab,” a large-scale chip factory project in collaboration with Intel’s technology team. This “TerraFab” project has been described as an important step for Intel’s contract manufacturing business, which has very high operating costs.
Intel’s foundry business is important because it aims to make chips for other companies, not just Intel products. Business Insider reports that Intel shares opened at about $121.10 on Wednesday and are expected to rise to about $131.55 before the market opens.
Artificial intelligence boosts chip stocks
Trump said he is encouraging companies such as Nvidia and Apple to establish more chip supply chains in the United States. Business Insider also reported that us government Intel invested about $8.9 billion in Intel last year to support domestic chip production. Intel shares have risen more than 400% since the government support agreement was signed, showing strong investor momentum.
The artificial intelligence boom has also helped chip companies overall, with technology stocks remaining strong even as global supply chains strain. According to CNBC, the Semiconductor Index, which tracks major U.S. chip companies, is up about 90% this year, showing a strong rebound across the industry. Meanwhile, global risks such as tensions in the Middle East affected oil and supply chains, but chip stocks remained strong due to demand for artificial intelligence.
