Intel Corporation finds itself at the center of a significant market rally, driven by a combination of strategic clarity and blockbuster rumors. The semiconductor giant’s stock is trading near its annual highs as investors digest the potential implications of a speculated return to business with Apple and a key internal decision.
Unconfirmed Apple Deal Fuels Investor Optimism
The primary catalyst for the recent upward move appears to be market speculation regarding a potential collaboration with Apple. Unverified reports suggest the iPhone maker could commission Intel to manufacture its M-Series chips beginning in 2027. This production would reportedly utilize Intel’s advanced 18A process node. The scale of the potential order is substantial, with estimates pointing toward up to 20 million units annually.
Should this partnership materialize, it would mark a dramatic reversal. Apple had previously shifted away from Intel as a supplier years ago to focus on its in-house silicon designs. A deal of this magnitude would not only bolster Intel’s standing within the industry but also generate significant revenue streams. While no official confirmation has been provided by either company, the mere prospect has been enough to energize the market.
Strategic Decision: Network and Edge Unit to Remain
Adding to the positive sentiment, Intel has moved to eliminate a major source of uncertainty regarding its corporate structure. After a months-long review, the company has decided it will neither sell nor spin off its Network and Edge (NEX) division. Instead, leadership plans to integrate this business unit more deeply into the corporation’s overarching artificial intelligence strategy.
This decision, made under CEO Lip Bu Tan who assumed the role in March 2025, reinforces a unified corporate vision where its foundry operations and product development groups work in closer alignment. The market has responded favorably to this strategic clarity. On December 4, shares were quoted at approximately 37 euros, having approached the 44-euro mark during the trading session.
A Stunning Rebound in Share Price and Fundamentals
The current rally represents a remarkable turnaround for Intel’s equity. Since hitting a low in August, the share price has advanced by approximately 118 percent, a recovery many had deemed unlikely.
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This optimism is partly rooted in a stronger-than-anticipated financial performance. For the third quarter of 2025, Intel reported earnings per share of $0.23, dramatically surpassing analyst expectations of just $0.01. Quarterly revenue increased by 3 percent to $13.65 billion. In a further sign of commitment to growth, the company is investing an additional $208 million to expand its production capabilities in Malaysia.
Despite the improved fundamentals, the valuation remains ambitious. Due to prior write-downs and restructuring costs, the price-to-earnings ratio stands above 1,000. This indicates the stock is currently pricing in future expectations rather than reflecting present profitability. While institutional investors like Guggenheim Capital have increased their holdings, a significant majority of analysts—roughly 70 percent—maintain a skeptical view, continuing to recommend selling the shares.
The Crucial Test Ahead
All eyes are now on the upcoming earnings report scheduled for January 30, 2026, when Intel will disclose its fourth-quarter results. This release will be critical in determining whether the current valuation can be justified by concrete financial performance or if market expectations have been set too high.
From a technical perspective, the stock is trading at the upper end of its yearly range. Having breached the 40-euro level, a period of short-term consolidation may be due. However, the dominant factor for the medium-term trajectory will be the resolution of two key questions: Will there be an official announcement regarding the Apple deal? And how precisely will the NEX division be woven into the AI roadmap?
For now, the market is betting on the success of Intel’s foundry transformation and the possibility that the former chip titan can reclaim a portion of its past dominance.
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