Intel's Stock Surges to Fresh High on Deal Talks. Could Apple Be Its Next Customer?

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Intel's stock is soaring to fresh highs amid hopes it could soon strike a deal with Apple.

Shares of Intel (INTC) were up 14% around $109 in recent trading, on track to set a closing record following a Bloomberg report that it's held preliminary talks to bring Apple (AAPL) on board as a customer.

Such a deal could give Apple more options in terms of suppliers, and where parts are made, Bloomberg reported. Currently, the iPhone maker's chip supply chain is largely reliant on one supplier, the report said, with chip manufacturing giant Taiwan Semiconductor Manufacturing Co. (TSM) producing chips designed by Apple mostly in Taiwan, and some at a facility in Arizona.

Intel and Apple did not respond to Investopedia requests for comment in time for publication.

The report adds fuel to earlier speculation Apple might become an Intel customer.

Bringing on Apple would represent a major win for Intel's foundry business, which has faced challenges in securing new customers, and could boost confidence in the chipmaker's turnaround.

Intel shares have rallied to record highs in recent weeks, after a strong earnings report showed that AI demand is boosting sales of Intel's chips, and a string of high-profile deals.

With Tuesday's gains, Intel shares have nearly tripled in value since the start of the year. Apple shares were up 1% recently and have climbed 3% year-to-date.

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