Forget Tariffs: An Apple-Intel Deal Could Be the Biggest Manufacturing Story of the Trump Era

Apple (NASDAQ:AAPL | AAPL Price Prediction) just posted its best March quarter ever at $111.18 billion, while Intel (NASDAQ:INTC) followed with a sixth consecutive revenue beat. Now Bloomberg reports Apple is in early talks to use Intel and Samsung as U.S. chip suppliers. That single thread reframes both earnings reports.

iPhone 17 Carries Apple. Foundry Carries Intel.

Apple’s quarter ran on the iPhone 17 lineup, which drove iPhone revenue of $56.99 billion and lifted Services to an all-time record of $30.98 billion. Tim Cook called it “our best March quarter ever” with double-digit growth across every region. The board followed with a $100 billion buyback authorization and a 4% dividend bump to $0.27. Cash flow is doing the talking.

Intel’s story is messier and more interesting. Revenue hit $13.58 billion, up 7%, while Data Center and AI jumped 22% YoY and Intel Foundry climbed 16%. A $4.07 billion restructuring charge tied to Mobileye created a GAAP loss, but non-GAAP EPS of $0.29 obliterated the $0.0127 consensus. CEO Lip-Bu Tan framed the moment plainly: “The next wave of AI will bring intelligence closer to the end user…significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”

Ecosystem Monetizer vs. Manufacturing Rebuild

Apple’s risk filing flags reliance on third parties for components and manufacturing. That is the structural hole the Intel rumor fills. Intel, meanwhile, has stacked partners: a multiyear Google collaboration on Xeon and custom IPUs, a Terafab seat alongside SpaceX and xAI, and assembly expansion in Penang. Stocktwits flagged Intel hitting a record high as Apple weighs its chipmaking skills.

The Numbers Are Already Pricing It

Intel shares are up 193% year to date and 115% over the past month. Apple has gained a calmer 11% in the same month. Intel’s forward P/E now sits near 119, with an analyst target of $79.05 well below today’s quote. Reddit captured the split mood: a 12,119-upvote “Shorting this dumbass company” thread sits beside the 820-upvote Apple-Intel deal post.

Apple as the Cash Machine, Intel as the Higher-Conviction Setup

Apple is the cash-machine setup here. Services growth, the buyback, and a deepening installed base give me defensible compounding even if the Intel deal evaporates. Intel is the higher-conviction speculation. If Lip-Bu Tan converts Apple talks into firm wafer commitments at Fab 52, the foundry segment finally earns its capex. If the talks stall, that 119 forward multiple looks fragile. Keep an eye on the next Foundry update for signed customer commitments.