Intel’s Stock Jumps 9% In Premarket Trading After Trump Announces Deal With Apple

Intel's stock jumped 9% in premarket trading on Thursday after US President Donald Trump revealed that the semiconductor firm had agreed to a deal with Apple for manufacturing its chips in the United States.

The stock was last trading 8.8% higher, while Apple rose 0.6% in premarket trading, CNBC revealed.

A partnership with Intel will help Apple diversify its manufacturing base as it seeks to increase its chip capacity. The tech giant relies heavily on TSMC, whose advanced production lines also work with AI chipmakers such as AMD and Nvidia.

For Intel, the deal represents a major win after it struggled for years and largely stayed out of the AI race due to manufacturing delays and the wait for  major customers.

A deal with Apple boosts both Intel's reputation ‌and ⁠its manufacturing business, which has lagged TSMC in recent years.

Earlier this week, Intel stated that initial production has started on a new generation of its manufacturing tech 18A, indicating strong demand for its central processors, as per Reuters.

“I decided to help Intel because we need to design and build our Chips right here in America,” Trump said on Truth Social about the deal.

“First, we helped bring in Nvidia, and they agreed to build their first level Chips with Intel.Next, Elon agreed to build his TerraFab, the largest Chip Factory in the World, designed together with Intel's Technology team,” he added.

For Intel, the Terafab project is the first big outside commitment for its capital-intensive foundry business.

The US government acquired a 10% stake in Intel last year.

It also announced plans to invest almost $10 billion in the company to build or expand US factories as part of the Trump administration's ⁠efforts to secure US supply chains for critical minerals and semiconductors.

Trump previously stated he "should have asked for ⁠more" of a position in Intel, eight months after the government's stake grew to be worth over $50 billion.

While the US-Iran war has disrupted supply chains and led to high energy prices, the artificial intelligence boom has insulated stocks, particularly those tied to AI infrastructure.

Intel's stock has gained significantly over the past few months. The shares have jumped 464% in the past 12 months, and the company reached a market cap of $608.7 billion.