Apple Is Said to Be Exploring a Collaboration with Intel Foundry. Should You Consider Buying INTC Shares Now?

Intel Gains Renewed Attention in the Semiconductor Industry

Intel (INTC) has recently become a focal point in the semiconductor sector, not only due to its own product developments and financial results. Reports indicate that major technology companies, including Apple (AAPL) and Nvidia (NVDA), are considering collaborations with Intel’s foundry division. This could result in a portion of their chip manufacturing for 2028 moving from their traditional supplier, Taiwan Semiconductor Manufacturing Company (TSMC), to Intel’s U.S.-based facilities.

While TSMC will remain the main supplier for Apple and Nvidia’s most advanced and critical chips, both companies are expected to integrate Intel into their supply chains for select components. This approach allows them to spread manufacturing risk and promote domestic production, all while maintaining their core product performance and timelines.

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Nvidia’s upcoming Feynman architecture, which will follow Rubin, is anticipated to be the first significant project involving Intel. While TSMC will continue to produce the main GPU die, some I/O die components may be manufactured using Intel’s 14A process as early as 2028, following Nvidia’s planned $5 billion investment in Intel in late 2025. Additionally, Intel is expected to manage up to a quarter of advanced chip packaging through its EMIB technology, with TSMC still handling the majority.

Apple, on the other hand, is reportedly considering a limited return to Intel’s manufacturing plants for entry-level M-series MacBook chips. This would mark the first substantial production partnership between the two companies since Apple’s switch to Apple Silicon in 2022. The decision is largely influenced by U.S. policy and the desire to diversify supply chains, rather than performance needs.

With Apple and Nvidia showing renewed interest in Intel as a domestic manufacturing partner, is now a good time to invest in INTC shares? Let’s examine the details.

Overview of Intel Corporation

Intel is a prominent technology firm focused on designing, developing, producing, and marketing a wide range of semiconductor products. Its portfolio includes microprocessors, chipsets, graphics processors, memory, and other hardware for consumer, business, and industrial applications. Based in Santa Clara, California, Intel plays a significant role in the data center, personal computing, artificial intelligence, and networking markets. The company’s market value stands at approximately $243 billion, placing it among the world’s leading semiconductor manufacturers.

Intel Stock Performance: A Year of Dramatic Change

Over the past year, Intel’s stock has experienced significant volatility within the semiconductor industry. After spending much of 2024 and early 2025 near multi-year lows, INTC shares began a strong recovery in 2025, fueled by renewed strategic focus and optimism around AI opportunities. Over the last 52 weeks, the stock has delivered an impressive 132% return.

A major factor behind this resurgence was the U.S. government’s direct investment in Intel, following an agreement in August 2025 under President Donald Trump’s administration to acquire a substantial stake in the company. This move aimed to strengthen domestic chip manufacturing capabilities.

More recently, Intel’s stock surged after news broke that Nvidia and Apple might shift some of their future chip production to Intel’s foundry services. This potential expansion of Intel’s client base sparked increased investor interest, causing the stock to jump roughly 11% on January 28.

Despite these gains, Intel’s share price has remained unpredictable, with sharp rallies followed by sudden declines. The stock reached a 52-week high of $54.60 on January 22, driven by positive business sentiment. However, it dropped as much as 17% in a single day on January 23, after the company reported better-than-expected fourth-quarter results but issued a cautious outlook for the first quarter of 2026.

As of now, INTC is up 26% year-to-date and is trading at a substantial premium compared to its sector median, with a forward earnings multiple of 1,091.

Intel’s Recent Financial Results

On January 22, Intel released its financial results for the fourth quarter and full year of 2025, showing a mix of modest outperformance and cautious guidance.

For the quarter ending December 27, Intel reported net revenue of $13.7 billion, representing a 4% decline year-over-year compared to the same period in 2024. Non-GAAP earnings per share reached $0.15, up from $0.13 a year earlier and exceeding analyst expectations.

The Data Center and AI (DCAI) division stood out with approximately $4.7 billion in revenue, a 9% increase year-over-year, reflecting robust demand. In contrast, the Client Computing Group (CCG) posted $8.2 billion in revenue, down 7% from the previous year.

Total revenue from Intel’s products dipped by about 1% year-over-year. The foundry segment generated around $4.5 billion, up 4% year-over-year, highlighting progress in advanced manufacturing processes. However, revenue in the “All Other” category saw a significant decline.

For the entire year, Intel reported revenue of roughly $52.9 billion, nearly unchanged from 2024. Non-GAAP earnings per share improved to $0.42, marking a return to profitability compared to the prior year.

Looking ahead to the first quarter of 2026, Intel projects revenue between $11.7 billion and $12.7 billion, with the midpoint falling below market expectations. The company also forecasts non-GAAP earnings per share of $0, indicating ongoing challenges with supply and margins, though improvements are anticipated later in the year.

Analysts expect earnings per share to reach approximately $0.07 for fiscal 2026, a 158% increase year-over-year, and to rise further to $0.55 in fiscal 2027.

Analyst Perspectives on Intel Stock

Tigress Financial Partners recently increased its price target for Intel to $66 and maintained a “Buy” rating, expressing strong confidence in the company’s turnaround. The firm highlighted positive trends in AI data centers, advancements in Intel’s 18A process, and the potential for a new wave of AI-enabled PCs as key growth drivers. UBS also raised its price target to $52 but kept a “Neutral” rating.

Overall, INTC is rated as a “Hold” by most analysts. Out of 44 analysts covering the stock, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” 33 have a “Hold” rating, one advises a “Moderate Sell,” and four recommend a “Strong Sell.”

Intel’s share price has already surpassed the average analyst target of $44.27. However, Tigress’s highest target of $66 implies the stock could still gain as much as 43% from current levels.