Intel Stock Soared After Trump Said Apple Will Build Chips With It. Is It a Buy?

Intel stock surged 11% following President Trump's announcement that Apple has agreed to design and build chips with Intel in the United States. Neither Apple (AAPL) nor Intel (INTC) has publicly confirmed the deal or disclosed any terms, leaving the market to trade on the White House statement alone.

The rally pushed Intel's valuation to 13 times sales, a premium multiple that already reflects significant optimism about the chipmaker's turnaround. While Intel's business has shown signs of improvement, The Motley Fool analyst notes the current valuation leaves little room for disappointment, particularly given the absence of official confirmation from either company involved.

The potential partnership would mark a major shift for Apple, which has moved away from Intel processors in recent years in favor of its own custom-designed chips. For Intel, securing Apple as a foundry customer would validate CEO Pat Gelsinger's strategy to transform the company into a leading contract manufacturer for other chipmakers.