Intel Shares Surge on Speculation of Major Apple Partnership

Intel's stock is staging a remarkable recovery on the markets, fueled primarily by growing speculation of a landmark manufacturing deal with Apple. The share price is approaching its yearly peak, though recent volatility underscores that investor sentiment remains fragile as the company navigates a complex restructuring.

The underlying transformation at Intel is beginning to show concrete results. The company's aggressive push to enhance efficiency has reportedly led to a drastic simplification of its organizational structure, with approximately half of its management layers eliminated. This drive for faster decision-making and lower costs is already reflected in its financial performance.

For the third quarter of 2025, Intel reported revenue of $13.65 billion, surpassing analyst expectations. Earnings per share also outperformed forecasts, lending significant credibility to the ongoing turnaround strategy led by management.

The Apple Catalyst

The most potent driver of the recent bullish momentum is the intensified market rumor that Apple could become a cornerstone client for Intel's foundry business. According to various analyst commentaries and industry reports, the Cupertino-based technology giant might utilize Intel's advanced "18AP" manufacturing process for entry-level M-series chips starting in 2027.

Should investors sell immediately? Or is it worth buying Intel?

For Intel, this represents far more than simply adding a new customer. The investment community views a potential partnership as a critical validation of the company's "IDM 2.0" strategy, which aims to position Intel as a competitive contract manufacturer (or foundry) against established industry leaders. The prospect of securing Apple as an anchor client has substantially boosted investor confidence, contributing to a share price gain of over 80% since the start of the year.

Strategic Decisions Spark Volatility

The path to recovery, however, is not without its bumps. Last week demonstrated this clearly when Intel's stock came under significant pressure. The sell-off occurred after company leadership confirmed it would retain its network and communications division. This decision disappointed many market participants who had speculated on a sale or spin-off of this unit, anticipating such a move would streamline the balance sheet and sharpen focus on core operations.

The initial disappointment led to a sharp, though brief, decline in the share price. The equity's quick stabilization by the week's end suggests that, in the view of many investors, the broader turnaround narrative carries more weight than individual strategic details.

Technical Outlook and Conclusion

Intel shares currently trade at €35.63, placing them just roughly 5% below the recent 52-week high of €37.52. While management has provided fourth-quarter guidance pointing to earnings per share of approximately $0.08, the true focus for investors remains firmly on the long-term potential of the foundry business. A decisive breakout above the annual high would be interpreted as a strong technical signal for the continuation of the current rally.