- Apple Intel Chip Pact Adds New Angle To Supply Chain Story
May 11, 2026
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Apple and Intel have reached a preliminary chip manufacturing agreement that would shift part of Apple's processor production to Intel facilities. The arrangement includes active support from the U.S. government, which holds a federal equity stake in Intel. This is Apple’s first major move to diversify chip production beyond TSMC, with potential implications for supply chain resilience and future hardware plans.
For investors watching NasdaqGS:AAPL at a current share price of $292.68, this development adds a fresh angle to an already closely followed stock. Apple’s share price sits alongside returns of 5.7% over the past week, 12.4% over the past month, and 39.4% over the past year, which keeps the company firmly in focus for many portfolios.
The preliminary Intel deal points to Apple taking chip sourcing more seriously as a business risk and not just a technical issue. As terms are refined, investors can watch how any shift in manufacturing mix might influence Apple’s hardware roadmap, supplier relationships, and the way the company talks about supply chain reliability on future calls.
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The preliminary manufacturing agreement with Intel gives Apple another option for producing its custom chips, which sit at the center of iPhone, Mac and emerging AI-focused devices. With the U.S. government now holding an equity stake in Intel, this partnership is also tied into domestic manufacturing policy, not just commercial terms. For you as an investor, the key angle is how a second advanced foundry could reduce concentration risk around Taiwan Semiconductor, while still meeting Apple’s tight requirements on performance, yields and timing. Competitors such as Samsung Electronics, Qualcomm and Google are all dependent on access to cutting edge capacity too, so any extra flexibility in Apple’s supply chain can matter for product launches and AI hardware plans.
How This Fits Into The Apple Narrative
The deal lines up with the narrative’s focus on supply chain optimisation and domestic investment, since a U.S. based Intel facility can complement Apple’s existing reliance on TSMC. It also tests the assumption that Apple can keep margins steady while reworking its manufacturing footprint, because Intel’s process maturity and pricing will influence long term cost of goods. The narrative highlights AI powered features and new product categories, but does not fully address how a government backed Intel partnership could shape where those AI chips are built and how geopolitical risk is shared between suppliers.
Story Continues
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The Risks and Rewards Investors Should Consider
⚠️ Integrating Intel as a foundry partner for advanced Apple silicon could introduce execution risk if production ramps more slowly than expected or if yields differ from TSMC’s. ⚠️ Government involvement and long term capacity commitments may limit Apple’s flexibility to quickly rebalance volumes between Intel and TSMC if costs or technology roadmaps diverge. 🎁 A second advanced supplier for key processors can reduce single supplier exposure and may improve Apple’s bargaining position on pricing and capacity over time. 🎁 Locating part of the chip supply chain in the U.S. could help Apple align with policy priorities and potentially support future approvals, incentives or cooperation on domestic projects.
What To Watch Going Forward
From here, focus on which Apple products Intel is confirmed to support, how quickly volume production ramps, and whether management begins to link this deal to AI centric hardware on future calls. Any commentary around gross margin guidance, capital commitments to Intel’s facilities, or changes in long term arrangements with TSMC will help you judge whether this partnership is easing supply risk or introducing new cost and timing questions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AAPL.
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- Stocks Settle Higher on Strong Earnings
May 11, 2026
The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.19%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.29%. June E-mini S&P futures (ESM26) rose +0.18%, and June E-mini Nasdaq futures (NQM26) rose +0.28%.
Stock indexes settled higher on Monday, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Strength in chipmakers and AI-infrastructure stocks led the broader market higher on Monday. Gains in stocks were limited on Monday amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield rose +5 bp to 4.41%. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones.
Monday’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million.
Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y.
WTI crude oil prices (CLM26) rose more than 2% on Monday, as optimism that the US and Iran would reopen the Strait of Hormuz was dashed after President Trump on Sunday said that Iran's latest peace proposals were "totally unacceptable." The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of Monday, 83% of the 450 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -0.27%. China's Shanghai Composite rallied to a 10-year high and closed up +1.08%. Japan's Nikkei Stock Average fell from a record high and closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) on Monday closed down -11 ticks. The 10-year T-note yield rose +5.4 bp to 4.408%. T-notes were under pressure on Monday from a +2% jump in WTI crude oil prices, which boosted inflation expectations. T-notes fell to their lows on Monday afternoon on weak demand for the Treasury’s $58 billion auction of 3-year T-notes that had a bid-to-cover ratio of 2.54, well below the 10-auction average of 2.64.
European government bond yields moved higher on Monday. The 10-year German Bund yield rose +3.5 bp to 3.040%. The 10-year UK gilt yield rose +8.6 bp to 4.998%.
ECB Governing Council member Martin Kocher said, "If the situation around energy prices does not improve significantly, an interest rate hike will be unavoidable in the near future."
Swaps are discounting an 84% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks rose on Monday amid continued optimism over AI infrastructure build-outs. Qualcomm (QCOM) closed up more than +8% to lead gainers in the Nasdaq 100, and Western Digital (WDC) closed up by more than +7%. Also, Micron Technology (MU) and Seagate Technology Holdings Plc (STX) closed up more than +6%, and NXP Semiconductors NV (NXPI), Intel (INTC), and Texas Instruments (TXN) closed up more than +3%. In addition, Nvidia (NVDA), Applied Materials (AMAT), and Analog Devices (ADI) closed up more than +1%.
Mining stocks moved higher on Monday amid rallies in silver and copper prices. Hecla Mining (HL) closed up more than +11%, and Barrick Mining (B) closed up +9%. Also, Coeur Mining (CDE) closed up more than +6%, and Freeport McMoRan (FCX) closed up more than +4%. In addition, Newmont Corp (NEM) closed up more than +3%, and Anglogold Ashanti (AU) closed up more than +1%.
Consumer-exposed stocks retreated on Monday after Wells Fargo warned about weakening consumer demand. Kohl’s (KSS) closed down more than -10% and Dollar General (GD) closed down more than -8% to lead losers in the S&P 500. Also, Ollie’s Bargain Outlet Holdings (OLLI) closed down more than -8% and Kontoor Brands (KTB) closed down more than -7%. In addition, Target (TGT) and Celsius Holdings (CELH) closed down more than -6%.
Airline stocks and cruise line operators were under pressure on Monday amid a +2% increase in WTI crude oil prices, which boosts fuel costs and undermines the companies' profitability prospects. American Airlines Group (AAL), Alaska Air Group (ALK), and Royal Caribbean Cruises Ltd (RCL) closed down more than -4%. Also, Carnival (CCL) closed down more than -3%, and Norwegian Cruise Line Holdings (NCLH), United Airlines Holdings (UAL), Southwest Airlines (LUV), and Delta Air Lines (DAL) closed down more than -2%.
Beazer Homes USA Inc (BZH) closed up more than +34% on a report that said Dream Finders Homes is close to announcing a $704 million offer to acquire the company.
Babcock & Wilcox (BW) closed up more than +30% after reporting Q1 revenue grew 44% year-over-year, and that Q1 Ebitda nearly quadrupled.
Lumentum Holdings (LITE) closed up more than +16% to lead gainers in the S&P 500 after Nasdaq announced that the stock will replace CoStar Group in the Nasdaq 100 before the market opens on Monday, May 18.
Coherent Corp (COHR) closed up more than +13% on news that CEO Anderson will travel with President Trump to China this week.
Monday.com (MNDY) closed up more than +5% after reporting Q1 adjusted EPS of $1.15, better than the consensus of 93 cents, and raising its full-year revenue forecast to $1.466 billion to $1.474 billion from a previous forecast of $1.45 billion to $1.46 billion, better than the consensus of $1.46 billion.
Iren Ltd (IREN) closed down more than -10% after announcing that it intends to offer $2 billion of convertible senior notes due 2033 in a private offering.
Trade Desk (TTD) closed down more than -7% after HSBC downgraded the stock to reduce from hold with a price target of $20.
Wendy’s (WEN) closed down more than -7% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $6.
Dell Technologies (DELL) closed down more than -5% after UBS downgraded the stock to neutral from buy.
Tyler Technologies (TYL) closed down more than -3% after announcing that it intends to offer $1 billion of convertible senior notes due 2031 in a private offering.
Mosaic (MOS) closed down nearly -2% after forecasting Q2 phosphate sales of 1.4 million to 1.7 million tons, weaker than the consensus of 1.78 million tons.
Earnings Reports(5/12/2026)
Aramark (ARMK), Karman Holdings Inc (KRMN), Millicom International Cellular SA (TIGO), On Holding AG (ONON), Qnity Electronics Inc (Q), Ralliant Corp (RAL), Under Armour Inc (UAA), Zebra Technologies Corp (ZBRA).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Chip Rally Surges 60% As Retail Traders Rush Back In
May 11, 2026
This article first appeared on GuruFocus.
Retail traders are moving back into chip stocks just as the rally is beginning to look increasingly stretched. According to positioning data from JPMorgan Chase & Co. (NYSE:JPM), individual investors raised purchases of technology shares to the highest level in a year last week, with AI-linked memory chipmakers and hardware companies attracting some of the strongest inflows. Hardware companies recorded their second-largest inflow on record. The timing could matter for investors because the Philadelphia Stock Exchange Semiconductor Index, or SOX, has climbed about 60% over the past six weeks, making valuation measures look increasingly extended and possibly leaving late buyers exposed if momentum turns.
Warning! GuruFocus has detected 6 Warning Signs with SNDK. Is SNDK fairly valued? Test your thesis with our free DCF calculator.
The rally has been driven by renewed confidence in the AI infrastructure trade, especially after semiconductor and memory chip earnings supported the view that demand remains strong. Dave Mazza, chief executive officer at Roundhill Financial Inc., said the earnings season validated the AI infrastructure trade, but also warned that the market is becoming increasingly priced for perfection. The momentum has helped lift the Nasdaq 100 Index 25% in six weeks, while retail traders have been crowding into semiconductor and hardware names including Sandisk Corp. (NASDAQ:SNDK), Micron Technology Inc. (NASDAQ:MU), and Intel Corp. (NASDAQ:INTC). Chris Verrone, head of technical and macro strategy at Strategas Securities LLC, said semiconductors are becoming unusually stretched, with some cases looking as extreme as 1999, and noted that positions should be protected and monitored carefully.
The concern is not that chip stocks cannot rise further, but that the advance has become narrow and increasingly dependent on momentum. In the broader S&P 500 Index, the share of stocks trading above their 200-day moving average has fallen to 53% from 58% the prior week, while 97% of stocks in the SOX Index are above that long-term trend measure. Cameron Dawson, chief investment officer at Newedge Wealth, said semiconductors are the most extended versus their long-term trend since early 2000, while Macro Risk Advisors' John Kolovos noted that the SOX Index is sitting 57% above its 200-day moving average, a level reached only two other times since 1990, in 1995 and 2000. Both prior periods came before stock-market declines, with the 2000 episode preceding the dot-com crash. Still, Barclays Plc strategist Alexander Altmann said shorting the VanEck Semiconductor ETF at this stage could be premature, suggesting the trade may not yet show enough broad euphoria to say it has fully run its course.
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- US Equity Indexes Advance, Treasury Yields Rise With Crude Oil as Trump Explores Options to Tame Iran
May 11, 2026
US equity indexes rose on Monday, alongside crude oil futures and Treasury yields, as President Dona
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- Qualcomm Stock Is Rising. Why the Chip Stock Hit a Record High.
May 11, 2026
Qualcomm stock surged Monday, notching its first record closing high since 2024 as enthusiasm around AI chips and data-center demand continues to build.
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- Stock Market Today: Dow Up As Trump Gives Iran Warning; Michael Burry Says This As Micron Soars (Live Coverage)
May 11, 2026
The Dow Jones index rose on the stock market today after President Trump delivered an Iran warning. Intel and Micron were winners. Michael Burry spoke out.
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- Intel's Stock Keeps Hitting New Highs. Here's How Much Traders Expect It Could Move This Week
May 11, 2026 · investopedia.com
Traders are betting on some big moves for Intel's stock that could extend its record-setting rally.
- Red-Hot Chip Stocks Are Lifting Tech ETFs. One ETF Has Doubled Since It Launched Last Month.
May 11, 2026 · investopedia.com
Some exchange-traded funds offer the safety of diversification at the expense of eye-popping returns. This year, returns are the story, especially at funds that hold big slugs of red-hot chip shares.
- Sector Update: Tech Stocks Rise Late Afternoon
May 11, 2026
Tech stocks were higher late Monday afternoon, with the State Street Technology Select Sector SPDR E
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- Stock Market Today: Dow Up; Intel Gain Reaches 260%; Dividend Play Tests Entry (Live Coverage)
May 11, 2026
The Dow Jones index is steady on the stock market today after President Trump rejects an Iran proposal. Intel and Micron are winners.
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