President Donald Trump officially confirmed on Thursday that Apple has agreed to work with Intel to design and manufacture chips in the United States, triggering a massive rally across semiconductor stocks. Intel shares surged approximately 10% following Trump's announcement on Truth Social, with the stock breaking above the $132.70 ceiling that had previously capped it twice. The rally pushed Intel past a level it had failed to clear twice, with 233.91 million shares traded on Thursday exceeding the volume behind the late-May push to the same area. According to The Wall Street Journal, Intel had reached a preliminary deal to make some chips for Apple after more than a year of discussions, with a contract providing Intel with steady demand from one of the world's largest consumer electronics companies.
Trump revealed that the administration helped Intel secure business from major technology companies in exchange for a 10% government stake. As reported by The Economic Times, he noted that the government's stake was now worth more than $60 billion after Intel's market value rose from about $100 billion when the investment was proposed to more than $600 billion. The White House has previously indicated it was considering taking an equity stake in Intel, with Commerce Secretary Howard Lutnick confirming in August 2025 that the administration was in talks to acquire a 10% stake. According to Reuters, Trump's administration announced plans to invest about $10 billion in Intel to support the construction and expansion of US factories. Intel Corp.'s stock surged more than 9 percent in premarket trading Thursday following the announcement, with the optimism spreading across the semiconductor sector as investors piled into AI- and chip-related stocks.
Despite the strong breakout, market positioning suggests cautious sentiment beneath the surface. The Chaikin Money Flow (CMF) recovered to zero from negative territory, indicating that selling pressure has eased and larger buyers may be returning. However, CMF remains at neutral rather than clearly positive, suggesting buying interest is not yet confirmed. Crypto traders are maintaining a defensive stance, with Nansen data showing $7.41 million in shorts against $2.90 million in longs, creating a net short position of $4.51 million across 21 wallets. The options market presents a mixed picture, with the put-call ratio falling from 0.68 on June 17 to 0.51 on June 18 by daily volume, while rising from 1.02 to 1.04 by open interest. This split suggests short-term traders are chasing the move with calls while longer-term holders are adding puts as protection against a failed breakout.
The semiconductor rally extended beyond Intel, with the iShares Semiconductor ETF climbing more than 4.6% as investors bet on continued AI-driven demand. Marvell Technology and Micron Technology each gained more than 5%, while Nvidia advanced over 1.2%. The broader semiconductor space strengthened significantly as the prospect of an Apple-Intel partnership comes at a time when demand for advanced semiconductors continues to accelerate, driven by artificial intelligence applications across consumer devices and data centers. Wall Street also traded higher, with the Dow Jones Industrial Average rising 0.7% in early trading, the S&P 500 gaining 1.1%, and the tech-heavy Nasdaq Composite advancing 1.4%. Intel stock has roughly tripled in 2026, helped by ties with Nvidia and Tesla, with demand from Agentic AI software also lifting sales of Intel's chips.
Trump described bringing in other major tech players such as Nvidia, Apple, and Elon Musk to collaborate with Intel and manufacture chips in the United States. The Apple-Intel agreement follows earlier efforts by the administration to support Intel and bring semiconductor production back to the US. The partnership helps Apple diversify its manufacturing base as it seeks additional chip capacity, ending TSMC's monopoly since Apple ventured into chip design. Earlier this week, Intel said a new generation of its manufacturing tech 18A has entered its initial production, as the chipmaker sees strong demand for its central processors. The administration has been stepping up efforts to secure US supply chains for critical minerals and semiconductors, including taking equity stakes in companies to reduce reliance on China.
