Apple and Intel Corporation (INTC) Chip Deal makes Strategic Sense but Production is Years Away

 Intel Corporation (NASDAQ:INTC) is one of the Best Stocks To Buy.

On June 24, Reuters reported that a potential Apple and Intel Corporation (NASDAQ:INTC) chip manufacturing agreement could strengthen the latter’s contract chip business. It could also expand Apple’s manufacturing capacity even though analysts said commercial production remains years away. Reuters noted neither company has formally announced a deal.

Malcolm Penn, CEO of Future Horizons, said the “absolute best possible case” is two to three years before the first chips leave production. He commented that Apple would face “a huge leap of faith” relying on Intel Corporation (NASDAQ:INTC)’s unproven foundry track record. Bob O’Donnell of TECHnalysis Research said Apple would likely prefer Intel’s 14A process, which he expects to become available in 2028 or 2029.

Meanwhile, Daniel Newman, CEO of Futurum Group, said Apple could begin with less critical components before broader adoption. Paul Meeks of Freedom Capital Markets cautioned investors against assuming “perfect execution” and pointed out Intel’s historical manufacturing challenges and yield concerns.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer goods and technologies. It provides computing, networking, data storage, and communication platforms. The company operates in four segments, including Client Computing Group, Data Center and AI, Intel Foundry Services, and All Other.

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