- Intel shares have risen over 15% but face resistance near $40 after rumors of supplying Apple’s low-end M-series chips.
- Analyst Ming-Chi Kuo predicts Intel may start delivering these chips to Apple by mid-2027, improving Intel’s foundry visibility.
- The potential deal is expected to have a small impact on TSMC, the current leader in advanced chip manufacturing.
- Analysts remain divided on Intel’s stock, with most recommending a hold and some projecting significant price drops.
- Intel is trading near its 52-week high and above its 200-day moving average, reflecting cautious investor optimism.
Shares of Intel (INTC) have climbed more than 15% in the past week but have encountered resistance around the $40 price level. The rise follows rumors that Intel might supply Apple with its lowest-end M-series processors within the next two years.
Analyst Ming-Chi Kuo from TF International Securities shared on X that Intel could begin shipping these processors to Apple as early as the second or third quarter of 2027. He also noted that, according to his industry surveys, there is significantly improved visibility on Intel becoming an advanced-node chip supplier to Apple. Although neither Apple Inc. nor Intel has confirmed this development, the rumor has contributed to stock gains for both companies, with Apple rising about 4% in the last five trading days.
Kuo further stated, “In absolute terms, order volumes for the lowest-end M processor are relatively small and virtually no material impact on TSMC’s fundamentals or its technology leadership over the next several years.” This indicates that the potential Intel deal would not materially affect TSMC, a leading semiconductor contract manufacturer and current supplier for many Apple chips.
Despite the recent price increase for INTC stock, analyst sentiment remains mixed. Some firms like Loop Capital and Rosenblatt have price targets as low as $25, while JPMorgan and Bank of America have set targets around $30 and $34, respectively. Paul Markham, investment director at GAM Global Equities, expressed optimism, noting that “Apple is a potential major reference customer whose presence validates Intel’s high-performance foundry offering.” He added that successful partnerships could lead to Intel winning further high-volume business such as CPU production for iPhones.
At present, Intel’s stock trades near the top of its 52-week range and above its 200-day simple moving average. A recent survey of analysts shows 11% recommend buying INTC shares, 70% advise holding, and 19% suggest selling.
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