Intel Surges on Apple Chip Deal, S&P 500 and Nasdaq Hit Records

Intel shares surged between 10% and 19% on May 8, 2026, following reports that Intel Foundry reached a preliminary agreement to manufacture processors for Apple devices.

The rally helped push the S&P 500 and Nasdaq to record highs, with strong AI chip earnings adding fuel.

This isn't a final deal. The agreement came after over a year of talks, with no specifics on chip types, volumes, or production timelines. Shipments before 2027 appear unlikely.

Apple aims to reduce reliance on TSMC, the dominant advanced chip fabricator. Bloomberg and Reuters have reported Apple exploring alternatives with Intel and Samsung.

For Intel, landing Apple as a foundry client is a major validation of CEO Pat Gelsinger's turnaround strategy, which includes attracting customers like Microsoft, Amazon, Tesla, and the US government. Intel's foundry division is projected to break even by 2027.

Broad market gains from AI chip earnings also contributed to the record highs.