Intel Corp (NASDAQ:INTC) stock gained as TF International Securities' Ming-Chi Kuo signaled growing momentum behind the chipmaker's bid to manufacture Apple Inc’s (NASDAQ:AAPL) next-generation M chips.
• INTC is in a favorable position. Get the market research here.
Kuo said Intel is moving closer to becoming an advanced-node foundry supplier for Apple, with momentum now much stronger than previously believed.
The analyst noted that Apple already signed an NDA with Intel and received the 18AP advanced-node PDK 0.9.1GA, allowing key simulation and performance-power-area (PPA) validation to progress as planned.
Also Read: Intel Unveils New Processors To Power AI, Gaming Devices
Apple expects Intel to deliver the updated PDK 1.0/1.1 in the first quarter of 2026, a milestone Kuo describes as critical for finalizing development.
According to the analyst, Apple intends to have Intel begin shipping its lowest-end M-series processor — currently powering the MacBook Air and iPad Pro — as early as the second or third quarter of 2027, depending on development progress once the new PDK is issued.
He projected annual shipments of 15–20 million units in 2026 and 2027. The estimates slightly lag today's combined volumes due to the expected introduction of a more affordable MacBook variant based on an iPhone-class processor.
Kuo emphasized that the order size is modest and will not meaningfully disrupt Taiwan Semiconductor Manufacturing Company Ltd’s (NYSE:TSM) moat. Still, he argued the strategic signal is substantial for both companies.
The analyst noted Apple needs a second advanced-node supplier to strengthen supply-chain resiliency, even while it continues relying heavily on Taiwan Semiconductor.
He also noted the Intel partnership aligning with U.S. industrial policy priorities, including Trump-era "Made in USA" initiatives.
Kuo viewed securing Apple's business as a milestone that could redefine confidence in Intel Foundry Services.
While Intel remains technologically behind Taiwan Semiconductor, Kuo says this win suggests its worst period may be ending and opens the door for future Apple orders — potentially on the 14A node and beyond — as well as business from other top-tier customers.
INTC Price Action: INTC stock is up 10.19% at $40.56 at publication on Friday.
Read Next:
Photo: Shutterstock
- No comments yet. Be the first to comment!