Intel Corp (NASDAQ:INTC) secured a major boost to its foundry business after Apple Inc (NASDAQ:AAPL) agreed to a manufacturing deal. Still, Intel shares are down during Tuesday’s premarket session, trading 4.7% lower, as traders digest AI-related commentary highlighting intensifying competition in data-center CPUs.
A note out Tuesday argues that AI infrastructure buildouts are reviving demand for data center CPUs as workloads shift from AI training toward inference, where orchestration layers and head nodes still lean heavily on x86 compute.
The same commentary pegs the data center CPU total addressable market at about $80 billion by 2028, a 2.9x increase versus 2021 levels, while flagging a tighter CPU-to-GPU mix moving toward 1:1 from roughly 1:8.
Apple Expands Beyond TSMC
The Wall Street Journal reported that Apple and Intel finalized the framework of the agreement after more than a year of negotiations. However, the companies have not disclosed which Apple products would use Intel-made chips.
The move could reduce Apple’s reliance on Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) and strengthen Intel’s turnaround efforts.
Apple has relied heavily on Taiwan Semiconductor to manufacture processors for iPhones, iPads, and Macs, but rising demand for advanced AI chips from companies such as Nvidia Corp (NASDAQ:NVDA) has tightened Taiwan Semiconductor’s manufacturing capacity.
Analysts Say TSMC Still Leads
Taiwan Institute of Economic Research economist Arisa Liu said Taiwan Semiconductor still maintains an edge in chip yields, power efficiency, and advanced packaging technologies critical for Apple’s A-series and M-series chips.
Liu added that Intel’s 18A process and Samsung Electronics Co, Ltd’s (OTC:SSNLF) 2nm technology still face manufacturing and efficiency challenges, making it difficult for Apple to move major flagship chip production away from Taiwan Semiconductor in the near term.
Intel Strengthens Its Turnaround Effort
The reported Apple partnership marks a significant milestone for Intel Foundry after years of manufacturing setbacks and struggles to attract major outside customers.
Since becoming CEO in 2025, Lip-Bu Tan has reorganized Intel’s leadership, hired former Taiwan Semiconductor executive Wei-Jen Lo, and increased investment in Intel’s advanced 14A manufacturing technology.
The Trump administration also backed Intel’s recovery by converting nearly $9 billion in federal grants into Intel equity and encouraging partnerships between Intel and major technology companies, including Apple, NVIDIA, and Elon Musk’s businesses.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the July 23, 2026 (estimated) earnings report.
- EPS Estimate: 19 cents (Up from Loss of 10 cents YoY)
- Revenue Estimate: $14.40 Billion (Up from $12.86 Billion YoY)
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $74.04. Recent analyst moves include:
- Mizuho: Neutral (Raises Target to $124.00) (May 12)
- RBC Capital: Sector Perform (Maintains Target to $80.00) (May 4)
- Tigress Financial: Buy (Raises Target to $118.00) (April 30)
Price Action
INTC Stock Price Activity: Intel shares were down 4.69% at $123.37 during premarket trading on Tuesday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment