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What an incredible comeback year it’s been for fallen former chip darling Intel (NASDAQ:INTC), which added to its gains last week after whispers that the firm might have a deal with Apple (NASDAQ:AAPL) to make some of its Mac chips.
Undoubtedly, if the rumor holds water, the needle-moving event may very well put the chipmaker back on the map as it looks to make the most of recent investments to fuel a comeback for the ages. For now, it’s unclear whether it’s worth buying on rumor if worth the while, especially if it’ll just end in selling the news. In any case, the stock is up around 20% in the past week, more than 77% in the last three months, and around 116% year to date.
Who would have thought that the fallen chip maker would outperform some of the leading titans in the space this year?
Intel stock is gaining serious traction
That’s why it’s always important to keep tabs on valuation and where expectations stand. With Nvidia (NASDAQ:NVDA) gaining less than 30% on the year, the AI chip king’s stock has trailed Intel, and for how much longer? That remains unclear at this juncture. Either way, the wind at the back of Intel might not be so quick to fade, especially if news of more deals and partnerships look to act as a driver on shares through the new year.
While buying on the back of rumors and double-digit percentage spikes typically isn’t a good move, I do think that there’s still ample value to be had in the likes of an Intel as we head into the new year, especially if news of the recent rumors looks to fade further. In the meantime, though, Intel stock is making new highs and could be one of the leaders as a potential Santa Claus rally looks to kick off in the coming weeks.
Could Intel really win back the business of Apple come 2027?
Apple, which used to feature Intel processors in its Macs, has gone down the Apple Silicon route (think the M-series chips) and has not looked back since. And with the M-series chips continuing to impress versus the benchmarks upon release, it doesn’t look like Apple is going to go back to Intel chips. But that doesn’t mean Apple can’t look to Intel for help with production of its own M-series chips, especially for some of its lower-end models (think the base M-series chips).
Though only time will tell if an Apple-Intel deal actually gets inked, it seems like the market believes the words of analyst Min-Chi Kuo, who’s been pretty spot on with the Apple news over the years. Personally, I think he’ll be proven right. And while it’s a big win for Intel, it’s not as though Apple is going back to Intel chips. Either way, it’ll be interesting to see how many clients it can bring on as a foundry partner. With many firms being pushed to produce in America, my guess is that new similar deals (or even rumors) could come, making Intel’s stock comeback go strong.
So, is Intel stock worth chasing into 2026?
With the Nvidia partnership to look forward to, a potential resurgence in PCs, as well as a slate of new AI chips (think the Crescent Island inference-optimized GPU), I think the stage is set for more of the same. While there are sure to be a few slides, especially as the AI trade looks to wobble a bit, I’d look to treat any steep dips as more of a buying opportunity.
If the Apple-Intel rumors are true (and I think they are, given the source), I certainly wouldn’t be surprised if such a collaboration were to be expanded upon further beyond 2027. Lower-end model chips may very well just be the start.
And let’s not forget that many firms tend to follow in Apple’s lead, whether that’s in-housing silicon design or other things. If an Apple-Intel deal goes smoothly, I do think that many other firms out there might also want to do business with Intel. As such, I think Intel stock remains a great long-term buy, even though shares seem overappreciated in the near term.