Intel's stock price continues to rise, with a potential Apple chip manufacturing agreement driving recent gains

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Investing.com - Intel stock rose another 6.6% in pre-market trading on Monday, continuing its recent strong upward momentum. Over the past month, this chip manufacturer’s stock has gained a total of 125.6%, with a year-to-date increase of 230.7%.

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The direct trigger for this round of gains was a report by The Wall Street Journal — stating that Apple has reached a preliminary agreement with Intel to manufacture chips for Apple devices. Boosted by this news, Intel’s stock surged 14% last Friday.

The report cites sources familiar with the matter, saying that the two companies have engaged in intensive negotiations for over a year and finalized a formal agreement in recent months.

Currently, details about which Apple products Intel will manufacture chips for remain unclear.

Lynx Equity analyst said, “The Wall Street Journal’s report ‘adds fuel to the fire’ for this stock, which has already performed well this year,” and reiterated a more optimistic outlook for Intel compared to AMD, setting its target price at $175.

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The analyst wrote, “With two major giants deeply involved, investor concerns about the sustainability of Intel’s foundry services (IFS) should diminish.”

Lynx also pointed out that, given the practical needs of process development, the potential agreement’s short-term monetization prospects may still be limited, but investors are unlikely to wait for that day to take action.

The organization also noted that this news has a positive spillover effect on the semiconductor capital equipment sector, expecting ASML, Lam Research, Applied Materials, and KLA to benefit, but also pointed out that substantial increases in wafer fab equipment spending are not expected to materialize until after 2028.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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