Intel shares rose 10% on Friday after TF International Securities analyst Ming-Chi Kuo posted on X that he expected Intel to start shipping its lowest-end M processors to Apple in the second or third quarter of 2027.
He said his latest industry surveys indicate that “the visibility of Intel becoming an advanced-node supplier for Apple has improved significantly recently.”
Intel stock fell 0.59% in early pretrading as of 6:26 a.m. ET Monday.
Kuo said the timeline of the partnership is dependent on the development process after Intel releases its process design kit – the blueprint from which Apple’s engineers can build the chips – which is expected in early 2026.
In his post, Kuo downplayed the impact of a potential Intel-Apple partnership on the Taiwanese chip maker, saying that Apple is expected to remain “heavily dependent” on the company’s advanced nodes for the “foreseeable future.”
“In absolute terms, order volume for the lowest-tier M processors is relatively small and will have virtually no material impact on TSMC’s fundamentals or its technology leadership over the next several years.”
Kuo said a deal with Intel would signal Apple’s strong support for the Trump administration’s push to build its domestic companies in the US.
Neither Intel nor Apple immediately responded to CNBC’s request for comment.
‘If Intel can do this, it has the potential to capture a higher volume and value business from Apple.’
Intel’s stock has seen a resurgence over the past 12 months after years of decline. The share price fell to $17.66 in April, before recovering over the past few months.
“Apple is a potential key reference customer whose presence validates Intel’s high-performance foundry offering,” Paul Markham, investment director at GAM Global Equities, told CNBC.
“If Intel does this, it is likely to win high-volume and value business from Apple, for example CPU production for the iPhone, and is likely to win business from other large chip designers.”
Intel has had a checkered relationship with Apple since 2005 when it first announced that the chip giant’s processors would power some products. The iPhone maker distanced itself from the company’s processors in early 2020.
Last week Intel was the subject of a lawsuit filed by TSMC, alleging that one of its former senior vice presidents had leaked “confidential information” to the company. Intel did not immediately respond to CNBC’s request for comment at that time.
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