Intel (INTC) shares rose more than 6% on Friday after TF International Securities analyst Ming-Chi Kuo suggested the chip giant could become the foundry supplier for some of Apple’s (AAPL) M-series processors.
“My latest industry surveys, however, indicate that visibility on Intel becoming an advanced-node supplier to Apple has recently improved significantly,” Kuo wrote in a post on X. “Apple previously signed an [non-disclosure agreement] with Intel and obtained the advanced-node 18AP PDK 0.9.1GA. The key simulation and research projects (such as PPA) are tracking in line with expectations, and Apple is now waiting for Intel to release PDK 1.0/1.1, currently scheduled for 1Q26. Apple’s plan is for Intel to begin shipping its lowest-end M processor, utilizing the 18AP advanced node, as early as 2Q–3Q27, but the actual timeline remains contingent on development progress following the receipt of PDK 1.0/1.1.”
The lowest-end M processors are used in Apple’s MacBook Air and its iPad Pro tablet, which are expected to ship roughly 20M units combined this year.
Kuo, said any potential deal would have positive implications for both Apple and Intel, giving the former a showing of “strong support” for the Trump Administration’s “Made in USA” policy. For Intel, the significance of potentially getting Apple’s advanced-node business would far exceed the direct revenue and profit from this business.
“Although Intel will still be unable to compete head-to-head with [Taiwan Semiconductor] (TSM) over the next several years, this suggests that the worst may soon be over for the [Intel Foundry Services] business,” Kuo explained. “Looking ahead, the 14A node and beyond could capture more orders from Apple and other tier-one customers, turning Intel’s long-term outlook more positive.”
Intel, Apple, and Taiwan Semiconductor did not immediately respond to a request for comment from Seeking Alpha.