Intel got the kind of day most turnaround stories dream about. President Donald Trump posted on Truth Social that Apple has agreed to work with Intel to design and build chips in America, and the market responded accordingly. Intel shares surged as much as 10-12% intraday on June 18, with one estimate pegging the gain at $12.72, pushing the stock to roughly $133.82.

The deal, the post, and the rally

Trump’s exact words on Truth Social: “Apple has agreed to work with Intel to design and build its Chips in America.”

Neither Apple nor Intel has confirmed the specific details of any agreement. What we appear to have is an announcement of intent, the kind of handshake-phase collaboration that could mean anything from a multi-billion-dollar foundry contract to a vaguely worded memorandum of understanding.

Washington’s semiconductor bet gets bigger

In August 2025, the US government purchased 433.3 million Intel shares at $20.47 each, acquiring a 9.9% equity stake valued at $8.9 billion. That investment was funded through a combination of $5.7 billion in CHIPS and Science Act grants and $3.2 billion from the Secure Enclave program.

Total CHIPS-related support for Intel has now exceeded $11 billion, and the company itself has invested over $100 billion in US semiconductor capacity expansion.

Intel CEO Lip-Bu Tan has emphasized the company’s commitment to ensuring that the world’s most advanced technologies are made in America.

The engineering problem nobody wants to talk about

Apple designs its own chips for iPhones, iPads, and Macs, currently manufactured almost exclusively by TSMC. Winning even a portion of that business would validate Intel’s foundry ambitions in a way that no government grant can.

What this means for investors

The bull case writes itself. Intel has massive government backing, a potential flagship customer in Apple, over $100 billion committed to domestic manufacturing, and a stock that still trades well below the valuation multiples of competitors like TSMC and Nvidia. If the Apple deal materializes into real volume, Intel’s foundry business transforms from an expensive bet into a revenue engine.

The bear case is equally straightforward. Intel has been promising a manufacturing comeback for years. Government money can fund factories, but it can’t fix process technology. And a Truth Social post, however market-moving, is not a signed contract with binding terms.