Intel Q1 Losses of $3.73B Cancel Germany and Poland Foundries; Shares Surge 8% on Apple Deal
INTC•Intel posted a GAAP net loss of USD 3.73 billion in Q1 2026 and canceled Germany and Poland foundry projects after converting subsidies into a 10% US government equity stake. Shares climbed more than 8% after Trump said Apple will partner with Intel to design and build US chips.
1. Operational Restructuring and First-Quarter Loss
To address mounting losses in its foundry division, Intel canceled planned projects in Germany and Poland and consolidated European manufacturing in Ireland, converting subsidy commitments into a 10% equity stake held by the U.S. government. These actions coincided with USD 3.73 billion in GAAP net losses reported for Q1 2026, driven by asset write-downs and high operating costs.
2. Apple Partnership Comments Drive Stock Rally
Intel shares surged over 8% in premarket trading after President Trump announced Apple will collaborate on designing and building U.S. chips with the company. The remarks also highlighted that the government’s 10% Intel stake, initially valued at USD 10 billion, has increased to USD 60 billion as market sentiment improved.
