Intel market cap surges to $608.7B after Apple chip deal announced by Trump

For investors, the Apple-Intel pact validates the semiconductor giant’s turnaround narrative, with Intel’s market cap now exceeding $600 billion and the administration’s equity stake worth over $50 billion – a bet on US industrial policy that could reshape technology investing.

On June 18, 2026, President Donald Trump announced via Truth Social that Apple has agreed to partner with Intel on designing and manufacturing its chips in the United States. The news sparked a 9% surge in Intel’s stock in premarket trading, adding to a 464% rally over the prior twelve months that has pushed Intel’s market capitalization to $608.7 billion. Apple’s shares rose 0.6% on the promise of diversifying its semiconductor supply chain. This marks a pivotal moment in the US semiconductor industry, as the partnership validates Intel’s turnaround under CEO Lip-Bu Tan and the Trump administration’s aggressive industrial policy push to reshore critical chip production.

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The news sparked a 9% surge in Intel’s stock in premarket trading, adding to a 464% rally over the prior twelve months that has pushed Intel’s market capitalization to $608.7 billion.

The announcement follows a series of strategic moves that have revived Wall Street’s confidence in Intel. After years of manufacturing delays, Tan drew investments from Nvidia and secured a 10% equity stake from the US government, which also pledged roughly $10 billion to expand or build domestic factories. Earlier this week, Intel disclosed that its next-generation 18A manufacturing technology had entered initial production, demonstrating readiness for advanced node fabrication. The Apple deal, first reported as a preliminary agreement by the Wall Street Journal in May after over a year of discussions, gives Intel a steady demand stream from the world’s largest consumer electronics company. It also crowns Intel’s entry into the foundry business by adding a marquee client alongside Nvidia and Elon Musk’s TerraFab project—the largest chip factory in the world, Trump claimed.

For Apple, the strategic calculus is clear. The iPhone maker has relied heavily on Taiwan Semiconductor Manufacturing Company (TSMC), whose advanced production lines have been strained by surging AI chip demand from Nvidia and AMD. The partnership with Intel provides a second source, reducing exposure to geopolitical risks in the Taiwan Strait and potential supply disruptions from the Middle East conflict that has already roiled energy markets. While Apple’s chips have been designed in-house, fabricating them in the US could shorten supply chains and align with Washington’s broader goal of reducing dependence on Asian manufacturing.