Intel Shares Jump 6% After Trump Says Apple Will Use Foundry Services
INTC•Intel shares surged 6% in early trading after President Donald Trump announced that Apple agreed to utilize Intel’s foundry services for future chips. The broader market saw the Dow rise 0.4%, the S&P 500 gain 0.8% and crude oil drop below $80 per barrel to three-month lows.
1. Stock Reaction
Intel shares rose 6% in early trading after President Donald Trump announced that Apple agreed to utilize Intel’s foundry services, marking the chipmaker’s largest intraday gain in months.
2. Apple Foundry Agreement
The announcement indicated that Apple will outsource future chip production to Intel’s fabrication facilities, potentially reversing Apple’s planned shift to in-house designs and boosting Intel’s foundry revenue and capacity utilization.
3. Market Environment
U.S. equities rallied with the Dow rising 0.4%, the S&P 500 gaining 0.8% and the Nasdaq Composite jumping over 1%, supported by the Federal Reserve’s decision to hold rates at 3.5%-3.75%. Crude oil futures fell to their lowest levels in over three months, with WTI trading near $73.85 a barrel and Brent around $76.83.
