• Apple and Nvidia are reportedly in talks to use Intel's U.S. foundry services for advanced chip production starting around 2028.
• The discussions focus on Intel's manufacturing and advanced packaging capabilities as an external foundry partner.
• The potential deals would reinforce U.S. based semiconductor manufacturing capacity and widen customer options beyond existing foundry providers.

Intel (NasdaqGS: INTC) is drawing fresh attention as a potential foundry partner for top-tier chip designers, with Apple and Nvidia reportedly exploring U.S. based production from 2028. The company last closed at $46.47, with the share price up 18.0% over the past month and 18.0% year to date. Over the past year, the stock has returned 139.2%, while the 5 year return stands at a 12.2% decline.

For investors watching Intel's effort to reposition itself, these talks point to growing interest in its foundry and packaging capabilities. Any eventual agreements with large chip designers could influence how Intel allocates capital, scales U.S. capacity, and balances its role as both chip designer and manufacturing partner.

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For Intel, the reported talks with Apple and Nvidia about 2028 chip production sit right at the heart of its push to become a major U.S. foundry option alongside Taiwan Semiconductor Manufacturing Company and Samsung. Potential packaging and manufacturing work for flagship GPU and processor lines would help validate Intel’s heavy spending on advanced nodes and packaging, and could give it more scale to spread fixed fab costs if these discussions eventually translate into contracts.

How this ties into the Intel turnaround story

This news lines up closely with the existing Intel narrative that centers on a reset toward AI-focused products and a foundry-first model. Interest from large chip designers like Nvidia and Apple supports the idea that customers are willing to test Intel’s manufacturing roadmap, which is a key part of the turnaround story that also includes restructuring, cost control, and efforts to simplify the business.

Risks and rewards investors should keep in mind

• Potential long-term foundry orders from Nvidia and Apple could add third party revenue streams and help fill U.S. fabs that require large volumes to be economical.
• Validation from high profile customers may strengthen Intel’s position versus foundry peers such as Taiwan Semiconductor Manufacturing Company and Samsung, especially for advanced packaging.
• Intel’s recent results show ongoing losses and supply constraints, so scaling capacity to meet new external demand while fixing internal issues could be challenging.
• Reports indicate Intel still faces execution and yield risks on newer process nodes, which could affect its ability to deliver on any future long dated contracts.

What to watch next

From here, the key things to watch are whether Intel confirms any formal agreements, how future guidance reflects foundry customer commitments, and whether management shows progress on easing supply constraints while ramping advanced nodes. If you want broader context on how these potential partnerships fit into the long term story, check community narratives on Intel through insights shared by other investors.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.