Shares of Intel (INTC 5.61%) climbed sharply higher on Thursday, gaining as much as 11.8%. As of 10:46 p.m. ET, the stock was still up 7.1%.
The catalyst that sent the semiconductor specialist higher was a report that the chipmaker had secured an important deal with a major tech player.
Image source: Getty Images.
Soaring demand for AI
Last month, reports surfaced that Apple (AAPL +4.88%) had held discussions with Samsung Electronics and Intel to manufacture the processors for its flagship electronic devices. At the time, none of the companies involved commented on the reports, leaving investors to wonder about their veracity.
Since then, rumors have swirled about a preliminary agreement between Apple and Intel. However, it seems President Trump has now let the cat out of the bag. In a lengthy post on his Truth Social platform, Trump wrote, "The technology the world relies on was invented in America. We all remember 'Intel Inside.' ... So I decided to help Intel because we need to design and build our chips right here in America." He went on to reveal that "Apple has agreed to work with Intel to design and build its chips in America."
It's important to note that none of the companies involved has confirmed Trump's statement, so investors may well be jumping the gun.
NASDAQ: INTC
Key Data Points
Intel has been in the midst of a recovery that began after CEO Lip-Bu Tan took the reins early last year. Central to his turnaround efforts is securing high-profile clients for the company's foundry business. To that end, Intel has been working feverishly to attract customers, which would validate its efforts. Another unconfirmed report suggests that Alphabet has placed an order with Intel for 3 million of its Tensor Processing Units (TPUs), which train and run artificial intelligence (AI) models for Google's cloud and AI operations.
Investors have bid up Intel's stock on the potential it could join the AI revolution, up 257% so far in 2026. However, at 122 times forward earnings, the valuation is getting pretty steep -- especially since these reports are unconfirmed and Intel isn't profitable.
