Intel Starts Production on Advanced Chip Node to Secure Massive Mobile Component Manufacturing Deal With Apple

Key Stats for Intel Stock

• Price change for Intel stock: -8%
• $INTC Share Price as of Jun. 16: $117
• 52-Week High: $133
• $INTC Stock Price Target: $93

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What Happened?

Intel (INTC) stock is in focus after the company announced it has begun production of its most advanced chip node, called 18A-P, at the VLSI Symposium in Hawaii.

Intel has been trying to rebuild its foundry business after years of manufacturing setbacks.

The 18A-P node is now in “risk production” — an early stage in which initial data suggest it will meet customer requirements once fully qualified.

Compared to its predecessor 18A, the new node delivers 9% higher performance or uses 18% less power. It is also at least 20% more heat-resistant and fully compatible with existing 18A setups.

The most closely watched potential customer is Apple. Intel shares jumped nearly 14% in May on reports of a preliminary deal to manufacture Apple chips.

Analysts say Apple is likely waiting for 18A-P specifically before committing.

The catch is that Apple designs its chips on Arm architecture — something Intel has not historically manufactured. That remains a hurdle.

But there is another opportunity that could move faster. Intel’s advanced packaging technology is already drawing serious interest. TSMC is facing packaging bottlenecks, which analysts say gives Intel a near-term opening.

Intel’s advanced packaging backlog has been growing, and management expects demand to come in at the billions of dollars per year level — much larger than initially anticipated.

Intel CEO Lip-Bu Tan told investors he expects formal foundry customer commitments to begin arriving in the second half of 2026.

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What the Market Is Telling Us About Intel Stock

Intel stock has had a remarkable run, up almost 200% year-to-date.

The momentum reflects a genuine operational turnaround. Q1 revenue beat guidance by $1.4 billion. Yields on 18A are improving faster than internal targets.

The U.S. government took a 10% stake last year, and Nvidia invested $5 billion shortly after.

Intel stock is now a bet on whether the company can convert momentum into major foundry contracts. The Apple deal would be transformative. But even without it, packaging demand and server CPU growth give Intel real near-term tailwinds.

The risk is execution. Yields need to stay strong, and manufacturing ARM-based chips is new territory.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!