Apple and Intel Corporation (INTC) Chip Deal makes Strategic Sense but Production is Years Away

Apple and Intel Corporation (INTC) Chip Deal makes Strategic Sense but Production is Years Away Fatima Gulzar Wed, July 8, 2026 at 8:49 PM GMT+2 2 min read INTC AAPL  Intel Corporation (NASDAQ:INTC) is one of the Best Stocks To Buy . On June 24, Reuters reported that a potential Apple and Intel Corporation (NASDAQ:INTC) chip manufacturing agreement could strengthen the latter's contract chip business. It could also expand Apple's manufacturing capacity even though analysts said commercial production remains years away.

Reuters noted neither company has formally announced a deal. Malcolm Penn, CEO of Future Horizons, said the "absolute best possible case" is two to three years before the first chips leave production. He commented that Apple would face "a huge leap of faith" relying on Intel Corporation (NASDAQ:INTC)'s unproven foundry track record.

Bob O'Donnell of TECHnalysis Research said Apple would likely prefer Intel's 14A process, which he expects to become available in 2028 or 2029. Apple and Intel Corporation (INTC) Chip Deal makes Strategic Sense but Production is Years Away Photo by Slejven Djurakovic on Unsplash Meanwhile, Daniel Newman, CEO of Futurum Group, said Apple could begin with less critical components before broader adoption. Paul Meeks of Freedom Capital Markets cautioned investors against assuming "perfect execution" and pointed out Intel's historical manufacturing challenges and yield concerns.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer goods and technologies. It provides computing, networking, data storage, and communication platforms. The company operates in four segments, including Client Computing Group, Data Center and AI, Intel Foundry Services, and All Other.

While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy .

Disclosure: None. Follow Insider Monkey on Google News .