Intel’s stock surged to 8% after analyst Ming-Chi Kuo reported that Apple is likely to integrate Intel to manufacture its M-series chips for future MacBook Air and iPad Pro models as early as 2027.
If the rumours turns out to be true, the significant move would mark a major shift to boost for Intel’s struggling contract chipmaking division that earned $4.2 billion last quarter in contrast to the $12.7 billion from Intel’s own product business.
According to the tipster, the Cupertino-based tech giant would integrate Intel’s forthcoming 18A-P process that offers improved performance than the current 18A technology.
While it may challenge TSMC, Apple’s current chip supplier, it would indicate that Intel can generate top-notch chips for major customers.
Previously, Apple relied on Intel processors before switching to its own TSMC-built silicon.
Intel shares exponentially raised to 116% year-to-date amid leadership changes, with Lip-Bu Tan replacing Pat Gelsinger as CEO.
The US government is now owning nearly 10% of Intel, becoming its largest shareholder, while Nvidia and SoftBank together invested $7 billion.
Despite recent momentum and successful early shipments of 18A-based chips, Intel is still dominated by the other leading players in the industry that include Nvidia and AMD.
Nvidia is now valued over $4.4 trillion, and AMD continues gaining CPU market share. Recently, AMD CEO Lisa Su estimated that the company is likely to reach 50% of data-center CPU revenue and more than 40% of client CPU revenue within three to five years.
