SANTA CLARA, California, May 11, 2026, 07:08 (PDT)
- Intel shares extended their rally Monday, getting a fresh boost from reports that SK Hynix is putting Intel’s advanced chip-packaging technology through its paces.
- Intel’s foundry unit, which has struggled with losses for years, may have snagged a break: reports point to a preliminary Apple manufacturing deal as the catalyst for the move.
- Here’s the risk: investors are betting on a smooth turnaround, but Intel hasn’t delivered consistent foundry profits yet.
Intel stock climbed in early U.S. hours Monday, with buyers reacting to new signals that its manufacturing turnaround could be luring customers like Apple and SK Hynix—a shift for a business that’s often fallen short of its own ambitions. Shares were at $128.07 by 13:53 UTC, up $3.15 from Friday’s close, after hitting an intraday peak of $134.89.
The timing is key here: Intel’s surge now seems less about a quick post-earnings boost and more like investors weighing if CEO Lip-Bu Tan can actually transform the U.S. chip giant into a major contract manufacturer. On Friday, The Wall Street Journal said Intel had struck a preliminary agreement to produce some chips for Apple devices, according to Reuters. Both companies wouldn’t comment. Reuters
A second possible customer could add some weight to the story. According to Tom’s Hardware, which pointed to a ZDNet Korea report citing unnamed industry sources, SK Hynix has been working with Intel on R&D for 2.5D packaging that leverages Intel’s Embedded Multi-die Interconnect Bridge (EMIB) technology. The idea: bring high-bandwidth memory and logic chips together in a single package. Tom’s Hardware noted that neither SK Hynix nor Intel had confirmed any of it. Tom’s Hardware
Advanced packaging brings distinct chips together, letting them function as a single system. For AI hardware, this is crucial—processors have to sit right next to high-bandwidth memory, or HBM, the speedy memory type powering AI data centers. Intel’s EMIB is described as a 2.5D packaging technology, linking logic chips and HBM via silicon bridges set directly into the package substrate. Intel
Intel’s first-quarter results put some numbers on the table for investors: revenue climbed 7% from a year ago to $13.6 billion. The data center and AI segment jumped 22%—that’s $5.1 billion. Intel Foundry pulled in $5.4 billion, up 16%, but a big chunk of that still comes from Intel’s internal demand. Intel Corporation
Tan put the spotlight on inference and agentic AI this quarter—machines aren’t just training models now, they’re out running and acting on them. “This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings,” he said in Intel’s earnings release. Chief Financial Officer David Zinsner called out “the growing and essential role of the CPU in the AI era and unprecedented demand for silicon.” Intel Corporation
That’s what’s fueling optimism at the moment: Intel isn’t just moving more server chips—it could end up packaging, and possibly making, semiconductors for clients hunting for options beyond Taiwan Semiconductor Manufacturing Co. Apple leans hard on TSMC, according to Reuters, which also notes that the foundry’s cutting-edge lines are booked by AI chip players like Nvidia and AMD. Reuters
The SK Hynix story presses on the same sore spot. According to Reuters last week, big tech names have been approaching SK Hynix with investment deals—money on the table for new production lines, even for equipment. The scramble points to just how tight memory chip supplies have gotten as AI demand eats up everything available. “Available capacity is essentially zero right now,” a source told Reuters. Reuters
Risks remain significant here. Intel Foundry chalked up a $2.44 billion operating loss in the first quarter, according to a filing, with adjusted free cash flow coming in at negative $2.02 billion. The Apple deal is still just tentative, SK Hynix hasn’t confirmed anything, and it’s unclear what Apple products would use Intel chips—or what kind of margins are in play. SEC
None of that has put off investors. TechCrunch pointed out Friday that Intel shares have soared roughly 490% in the last year—a rally the publication described as Wall Street’s enthusiasm potentially outpacing the company’s real progress. TechCrunch
The urge to stack up Intel against Nvidia is understandable, though it doesn’t really hold up. Daniel Sparks at Motley Fool pointed out Intel’s first-quarter revenue climbed 7%, and its data center and AI segment jumped 22%. Even so, Nvidia’s latest quarter saw revenue hit $68.1 billion, with much fatter gross margins. “So no, Intel probably isn’t the next Nvidia,” Sparks concluded, noting much of the optimism is already reflected in Intel’s share price. The Motley Fool
Right now, Intel’s turnaround hinges on two things. The company needs to keep moving CPUs into the AI infrastructure space, where AMD and Arm aren’t letting up. It also has to prove that its foundry and packaging clients represent sustainable business, not just chatter. The stock’s jump on Monday suggests investors are paying up for that chance. Whether Tan can deliver on orders, yields, and margins will be clearer in coming quarters.
