Intel stock rises after Trump touts U.S.-built chip deal with Apple

The boost continues Intel's recent rally as the chipmaker bounces back from years of headwinds.

Intel's stock rose 9% in premarket trading on Thursday after President Donald Trump announced a deal between Intel and Apple to design and build chips in the US. The deal is part of a broader effort to increase domestic chip production and reduce reliance on foreign manufacturers. Intel's stock has been rising recently, bouncing back from years of decline, with the company's market value increasing by over $20 billion in the past month. The deal with Apple is seen as a major boost to Intel's prospects, with the company set to benefit from Apple's large and growing demand for chips.

The deal between Intel and Apple will directly affect consumers who use Apple products, as it is likely to lead to increased investment in research and development, potentially resulting in improved performance and new features for Apple devices. This could lead to higher prices for Apple products, with some estimates suggesting that the cost of producing chips in the US could be up to 20% higher than in countries like Taiwan. The increased cost could be passed on to consumers, potentially affecting the price of iPhones and other Apple devices. This would be a significant development for the millions of people who rely on Apple products for their daily lives.

The deal between Intel and Apple is part of a broader trend of companies bringing their manufacturing operations back to the US, driven in part by the Trump administration's trade policies and incentives for domestic production. Intel has been investing heavily in its US manufacturing operations, with the company announcing plans to build a new factory in Arizona last year. The company's efforts to increase domestic production have been driven by concerns over supply chain security and the need to reduce reliance on foreign manufacturers, particularly in Taiwan and China. This shift in strategy reflects a significant change in the global semiconductor industry.

Investors will be watching for Intel's quarterly earnings report, due to be released on July 22, for further details on the deal with Apple and its impact on the company's financial performance. The report is expected to provide guidance on the company's revenue and profit expectations for the rest of the year, and will be closely watched by analysts and investors. One surprising detail is that Intel's CEO, Bob Swan, has been quietly building a team of experts in artificial intelligence and machine learning, suggesting that the company may be planning to make a major push into these areas in the coming years.