Intel shares rise as rumors spread about a new major customer

Could Intel be closer to concluding a deal with iPhone maker Apple?

Shares of the chipmaker rose on Friday as one analyst added fuel to rumors that the iPhone maker could become a new customer for the chipmaker. Intel (INTC) shares rose more than 10% during Friday’s shortened trading session to lead gains in the S&P 500 and Nasdaq. (Reads Investopedia Daily markets coverage here.)

The likelihood of Apple (AAPL) becoming a new Intel customer “has recently improved significantly,” said Ming-Chi Kuo, an analyst at TF International Securities, citing industry surveys, published on X Friday, suggesting Intel could start shipping Apple processors as soon as 2027.

Apple and Intel did not respond to Investopedia Requests for comment in time for publication.

Intel shares have nearly doubled in value this year after a series of recent deals, including a partnership with AI chip leader Nvidia (NVDA). However, it is still far from its historical highs as the company is still working to convince investors about the sustainable transformation of its business.

One of these challenges remains securing new customers for its manufacturing operations. The deal with Nvidia did not include commitments to Intel’s foundry, raising speculation about whether the relationship could expand later or whether the lack of foundry commitments might indicate problems convincing customers.

Reaching an agreement with former Intel customer Apple could go a long way in helping allay these concerns. Apple shares rose just under 0.5% on Friday.