Intel (INTC) Stock Skyrockets on Apple Manufacturing Rumors & Malaysia Expansion

Intel shares are on a tear—fueled by whispers of a major Apple deal and a strategic push into Southeast Asia.

The Catalyst: Silicon Speculation

Rumors are swirling that Apple is considering Intel for future chip manufacturing. If true, it would mark a seismic shift in the tech supply chain and pour billions into Intel's foundry business. The street loves a comeback story, even if it's built on speculation.

The Expansion: Betting on Malaysia

Simultaneously, Intel is doubling down on its Malaysia operations. This isn't just a factory—it's a hedge against geopolitical tension and a play for cheaper, scalable production. The market is interpreting this move as a direct challenge to TSMC's dominance in advanced packaging.

The Bottom Line

For now, traders are buying the rumor. Intel's surge reflects a desperate hunger for good news in the semiconductor sector—and a classic case of Wall Street betting on a narrative before the ink is dry on any contract. After all, in modern markets, a compelling story can sometimes be worth more than a signed deal.

TLDR

• Intel stock jumped 8.7% on Tuesday following an unverified report about a potential Apple partnership
• Analyst Ming-Chi Kuo claims Intel will manufacture lower-end M processors for Apple’s MacBook Air and iPad Pro starting in Q2 2027
• Intel announced a new investment exceeding $200 million in Malaysia to expand semiconductor assembly and testing operations
• The company’s advanced facility in Penang is 99% complete after receiving an initial $7 billion investment in 2021
• Malaysia currently accounts for roughly 13% of the global market for chip assembly, testing, and packaging

Intel stock climbed 8.7% on Tuesday as investors reacted to reports suggesting the chipmaker might soon manufacture processors for Apple devices. The rally outpaced broader market gains, with the S&P 500 rising just 0.2% and the Nasdaq Composite adding 0.5%.

Intel Corporation, INTC

The surge came after TF International analyst Ming-Chi Kuo posted on X claiming Intel WOULD supply Apple with lower-end M processors. These chips power the iPad Pro and MacBook Air. According to Kuo, the first shipments could arrive as early as the second quarter of 2027.

The report remains unconfirmed by either company. But investors clearly see the potential partnership as a game-changer for Intel’s struggling business.

Intel once ruled the semiconductor industry with its powerful CPUs. However, the company has lost ground in the artificial intelligence era, which relies heavily on GPUs rather than traditional processors. A deal with Apple would represent a major vote of confidence in Intel’s manufacturing capabilities.

The chipmaker faces real challenges beyond securing new customers. The company has cut its workforce dramatically in recent months. Much of its key talent has left for competitors.

Intel Doubles Down on Malaysia

While the Apple rumors grabbed headlines, Intel also made concrete moves to expand its global manufacturing footprint. The company announced over $200 million in new investments in Malaysia.

Prime Minister Anwar Ibrahim revealed the commitment after meeting with Intel CEO Lip-Bu Tan. Anwar shared the news on his Facebook page, confirming the expansion of Intel’s assembly and testing operations in the country.

Intel’s advanced facility in Penang is nearly finished. The prime minister stated that construction is 99% complete. The complex originally received a $7 billion investment back in 2021.

Malaysia’s Growing Role in Semiconductors

Malaysia has positioned itself as a critical player in the global semiconductor supply chain. The country handles approximately 13% of worldwide chip assembly, testing, and packaging operations.

The Malaysian government is working to attract more sophisticated manufacturing projects. Tech giants including Microsoft, Google, and ByteDance have recently committed billions to AI infrastructure in the country.

Companies are looking to diversify away from China-dependent supply chains. Malaysia offers an attractive alternative with established infrastructure and government support. Intel joins Infineon and other major manufacturers already operating facilities there.

Intel plans to invest more than $200 million in semiconductors through this latest Malaysia commitment. The timing aligns with the company’s broader turnaround strategy as it tries to regain lost market share.

The Penang facility represents a key component of Intel’s regional operations. With construction nearly complete, the plant should begin contributing to production capacity soon. The expansion strengthens Malaysia’s position as a semiconductor hub while giving Intel additional manufacturing flexibility for potential new customers like Apple.