SANTA CLARA, Calif. — Intel Corp. shares climbed sharply Monday, closing at $129.44, up $4.52 or 3.62%, as investor optimism swelled over a potential landmark manufacturing deal with Apple and continued strength in artificial intelligence-driven demand for its chips.

The semiconductor giant's stock has been one of the market's biggest winners in 2026, soaring more than 190% year-to-date and hitting multiple all-time highs in recent weeks. Monday's gain extended a remarkable rally fueled by better-than-expected quarterly results, strategic foundry wins and renewed confidence in Intel's turnaround under CEO Lip-Bu Tan.

After-hours trading saw modest profit-taking, with shares dipping 0.62% to $128.64. Yet the day's performance underscored Wall Street's growing conviction that Intel is regaining ground in the fiercely competitive chip sector.

The latest catalyst centers on reports that Intel and Apple have reached a preliminary agreement for Intel to manufacture processors for certain Apple devices. The Wall Street Journal and other outlets detailed negotiations spanning more than a year, with U.S. government involvement helping facilitate the pact. Intel's foundry business, long a money-loser, could gain a major external customer in one of the world's most valuable companies.

Analysts called the potential Apple deal transformative. It would validate Intel's 18A manufacturing process and boost its external foundry ambitions at a time when the company has secured commitments from Microsoft, Amazon and others. The U.S. government, which converted roughly $9........

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