Shares in Intel (INTC) stock soared on Tuesday after reports emerged that the semiconductor manufacturer will provide chips to Apple. The report broke from a Wall Street analyst on Friday and picked up steam Monday afternoon into Tuesday morning. INTC stock previously faced resistance at the $40 mark, but surged over 8% Tuesday to $43.

TF International Securities analyst Ming-Chi Kuo posted on X last week that he expected Intel to begin shipping its lowest-end M processor to Apple as early as the second or third quarter of 2027. He said that his latest industry surveys indicate that “visibility on Intel becoming an advanced-node supplier to Apple has recently improved significantly.” Additionally, Kuo notes that Apple will use Intel’s upcoming 18A-P process technology for the chips, which promises improved performance compared to its current 18A technology.

Apple previously used Intel’s chips in its laptops and desktops before switching to its own chip designs that are manufactured by TSMC. The new chips would still use Apple’s designs but Intel’s processing technologies.

How an Intel-Apple Partnership Could Boom INTC stock

The rumor has yet to be confirmed by either Apple Inc. or Intel; however, the news has sparked a solid rally for both stocks, with AAPL also up 3.7% in the last 5 days. Despite the recent climb, analysts remain mixed on Intel’s (INTC) stock future, with many calling for another decline. Loop Capital and Rosenblatt have a $25 target, while JP Morgan targets $30, and B of A Securities aims for $34.

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Meanwhile, Paul Markham, investment director at GAM Global Equities, agrees with Kuo about optimistic prospects for INTC stock. “Apple is a potential major reference customer whose presence validates Intel’s high-performance foundry offering,” he told CNBC in an interview. “If Intel pulls it off, there is potential to win higher volume and value business from Apple, for example, CPU production for the iPhone, and win business from other large chip designers.” At press time, INTC is trading near the top of its 52-week range and above its 200-day simple moving average at $40. INTC shares have soared 116% year to date and 113% over the past 12 months.