Here's Why Intel Stock Soared Last Month
Two pieces of newsflow positively impacted the stock in June, and there could be more to come.
Overview
Shares in Intel Corporation (NASDAQ: INTC) soared by 21.8% in June, according to data from S&P Global Market Intelligence. There are probably two reasons for the increase, and both speak to the business's longer-term growth potential.
While its important to note that neither company has confirmed reaching an agreement, in mid-June President Trump announced that Apple (NASDAQ: AAPL) amd Intel had reached an agreement that they would design and manufacture chips in the U.S. The deal, if confirmed, would be good news for Intel's foundry business as it tries to build scale and better compete with market leader Taiwan Semiconductor (NYSE: TSM).
Details
A deal would also be in line with the Trump administration's determination to encourage domestic manufacturing, and particularly with key technology providers like Apple. For example, the administration invested and entered into a public-private partnership with rare-earth company MP Materials in July of last year, which was closely followed by a $500 million long-term supply agreement for rare earth magnets between MP Materials and Apple. Given that the Trump administration also invested in Intel in 2025 (acquiring 10% of the company), it's reasonable to expect more pressure for an Apple/Intel deal.
Source
Originally published at www.fool.com.