Key insights
- Intel's recent surge is attributed to a potential chip supply deal with Apple, driven by geopolitical risks associated with relying solely on TSMC in Taiwan. The shift towards domestic chip manufacturing in the US is seen as a strategic move to mitigate supply chain vulnerabilities. The sustainability of this rally hinges on whether this is a long-term supply chain shift or a temporary reaction to geopolitical pressures.
$INTC more than doubled in April, best month in their history on the Nasdaq. Apple chip deal news just dropped this week pushing it to 110. The deal makes more sense now than it ever has.
Apple's entire chip supply runs through TSMC in Taiwan, one company on one geopolitically sensitive island. Add the Iran war disrupting global shipping, Trump tariffs that can appear with zero warning on any given Tuesday, and suddenly domestic chip manufacturing goes from a nice idea to a necessity. Intel has the US fabs and I don't think the timing is a coincidence.
Is this a real supply chain shift or does it fade when geopolitical pressure eases?
Edit: Made a video discussing this further on my profile, if interested.