Intel shares soar: analyst tipped on prospects for new Apple contract

Quotes Intel jumped by 7.7% in trading on Friday, November 28, after TF International Securities analyst Ming-Chi Kuo said that the chipmaker may become a manufacturing partner for some Apple processors, noted Seeking Alpha. We are talking about the M-series processors, which are used in MacBook Air and iPad Pro and in total should be dispersed in the approximate circulation of 20 million devices this year, the publication writes.

"There have long been rumors in the market that Intel could become Apple's advanced process supplier, but there has been little clarity on the matter until now. However, according to my latest industry surveys, the prospect (...) has become much clearer," Kuo wrote on social network X.

He noted that a potential deal would be positive for both companies. For Apple, it would allow it to demonstrate its commitment to the Trump administration's "Made in the USA" policy, while for Intel it would be an opportunity to gain an iconic customer that would exceed the direct revenue and profits from this collaboration, the analyst said.

Apple has abandoned Intel's x86 processors in 2020, announcing a switch to its own M-series chips with ARM architecture for Macs. The first such devices - the MacBook Air, MacBook Pro, and Mac mini on the M1 chip - were introduced in November 2020. Since then, these chips have been produced exclusively at Taiwan's TSMC.

"While Intel still won't be able to compete directly with TSMC in the next few years, this suggests that the worst for Intel's Foundry Services business may soon be behind us," Kuo explained.

Intel, Apple and TSMC could not immediately respond to Seeking Alpha's request for comment.

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