What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) jumped 10.2% in the afternoon session after reports surfaced that chip giants Nvidia and Apple were considering using Intel's foundry services for future chip production.
According to a report from DigiTimes, Nvidia planned to partner with Intel on its next-generation "Feynman" GPU chip, while Apple was also in discussions for an entry-level processor. This news represented a major potential win for Intel's strategy to manufacture chips for other companies, a market largely controlled by Taiwan Semiconductor Manufacturing Company (TSMC). The possible shift by major players like Nvidia and Apple signaled growing confidence in Intel's manufacturing abilities.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. But moves this big are rare even for Intel and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 15.6% on the news that the company reported underwhelming fourth quarter results with sales guidance for the next quarter falling short of Wall Street's expectations.
Adding to the concerns, management revealed that severe supply chain constraints would critically hamper production in the first quarter of 2026. Executives guided revenue down to a midpoint of $12.2 billion, missing analyst consensus, and cautioned that earnings would effectively shrink to breakeven levels. On the other hand, the backward-looking numbers actually exceeded Wall Street's forecasts, with revenue reaching $13.7 billion. Earnings and operating income also beat consensus estimates.
Still, this was a mixed quarter, as the forward-looking guidance muted the euphoria that had supported the stock's rally the days leading to the earnings announcement.
Intel is up 24.5% since the beginning of the year, but at $49.02 per share, it is still trading 9.8% below its 52-week high of $54.32 from January 2026. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $874.31.
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