Intel Jumps to Record on Reported Apple Chip Pact

Overview

• Intel shares, which jumped 14% to a record $124.92 Friday after a Wall Street Journal report of a preliminary Apple manufacturing deal, traded near $130 in Monday premarket.
• The agreement, which has not been confirmed by the companies, would have Intel make some Apple processors under its contract chipmaking, or foundry, business.
• Bank of America raised its Intel price target to $96 yet kept an Underperform rating and left the Apple work out of its model.
• The bank sketches a path to about $10 billion in annual foundry revenue by 2030 if Intel wins roughly a quarter of Apple’s chip orders and says production would take two to three years to ramp.
• Analysts also flag near-term margin hits from depreciation and low yields and say Intel’s 2027 breakeven goal for the foundry unit could slip by one to two years.