Intel shares rally after Trump announces chip production for Apple in US

Intel just had one of its best trading days in recent memory. President Donald Trump announced on Truth Social that Apple and Intel would collaborate to design and manufacture chips within the United States, sending Intel shares soaring by an estimated 13-18% intraday and pushing the stock to all-time highs.

The announcement, made on June 18, confirms what the Wall Street Journal first reported on May 8: that Intel would begin producing chips specifically for Apple devices, with the Trump administration actively facilitating discussions between the two tech giants.

The deal behind the deal

The US government holds an approximately 10% equity stake in Intel that it acquired in August 2025 for roughly $9 billion, obtained by converting federal grants into equity. With Intel’s stock now at all-time highs, the government’s stake has been valued at approximately $56.5 billion following the rally, representing a substantial paper gain on the original $9 billion position.

Apple’s involvement isn’t exactly a surprise either. The company committed an additional $100 billion to US manufacturing back in 2025, a pledge that needed concrete partnerships to become reality.

Why this matters for the semiconductor landscape

For years, the global chip supply chain has been concentrated in a way that makes national security hawks uncomfortable. TSMC in Taiwan manufactures the vast majority of the world’s most advanced semiconductors.

For Intel, the upside is transformational. Becoming a foundry partner for the world’s most valuable company would validate its entire strategic pivot from a chip designer that manufactures its own products to a contract manufacturer that builds chips for others. That’s the business model that made TSMC a $900 billion-plus company.

What this means for investors

A 13-18% single-day move for a company of Intel’s size reflects genuine optimism that this deal could reshape Intel’s revenue trajectory for years.

The government’s 10% stake creates an unusual dynamic. When a major shareholder is also the entity facilitating your biggest business deals, it raises questions about market distortion. TSMC still leads in advanced manufacturing processes. Samsung is investing heavily in its own foundry business.

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