Intel shares leap after Trump says it’s working with Apple to make chips in the U.S.
Following President Trump’s announcement on social media that Intel will be collaborating with Apple to design and manufacture chips in the U.S., Intel’s shares experienced a significant jump on Thursday. The stock price surged by 10.5% to $133.82 as trading opened that day.
While Apple has not yet provided a comment on the potential partnership, Intel refrained from making any statements regarding the speculated Apple-Intel agreement.
President Trump’s mention of Intel comes on the heels of a deal struck last August, where the U.S. acquired a 10% stake in the semiconductor company. This move raised concerns about potential conflicts of interest and drew criticism from the Cato Institute, labeling it as an “unprecedented government ownership of private enterprise.”
Highlighting the government’s stake, President Trump pointed out the significant increase in Intel’s valuation from $100 billion in August to approximately $600 billion presently. He emphasized the growth, stating, “Nine months, and they’ve increased in value over HALF A TRILLION DOLLARS! America’s stake is now over 60 billion dollars.”
Teaming up with Intel could provide Apple with a chance to diversify its manufacturing footprint, reducing dependency on its major overseas chip supplier, Taiwan Semiconductor Manufacturing Company (TSMC). Analysts suggest that this collaboration signifies a strategic move by Apple to enhance its supply chain and alleviate manufacturing pressures.
Additionally, Apple’s CEO Tim Cook indicated plans to increase prices on products to counter rising costs for memory and storage chips, driven by heightened demand from AI companies.
