Apple, Intel Reach Preliminary Chip Deal; INTC Surges 17% to $128.44, AAPL +1.7%

Apple and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple devices, boosting INTC shares 17% to $128.44 and AAPL 1.7% to $292.30. The deal follows May 1's discontinuation of the $599 256GB Mac Mini—raising the price to $799 for 512GB—amid AI demand outpacing TSMC supply, with CEO Tim Cook warning of months-long constraints. May 5 reports detailed exploratory talks with Intel and a Samsung Texas plant visit as backups, after Apple posted Q2 revenue of $111.2B (+17% YoY) and Q3 growth forecast of 14-17%. Talks lasted over a year, aided by U.S. government support.