INTC Stock Hits Record High As Apple Mulls Using Co’s Chipmaking Skills; TSM Drops

• Apple Inc. has already held exploratory discussions with Intel Corp. and Samsung Electronics Co. 
• Move to reduce reliance on Taiwan Semiconductor Manufacturing Company (TSMC).
• Apple is considering additional suppliers due to supply-chain disruptions.

Intel (INTC) shares jumped to their record highs on Tuesday, while TSMC (TSM) stock dropped 2% following a media report that Apple is mulling using Intel and Samsung to manufacture its chips, amid a heavy supply-demand mismatch weighing on the chipmaking industry. 

Apple (AAPL) has held exploratory discussions about using Intel Corp. and Samsung Electronics Co. to produce the main processors for its devices in the US, a move that would offer a secondary option beyond longtime partner TSMC, Bloomberg reported. 

According to the report, Apple executives have already begun early-stage talks with Intel and visited a Samsung plant under construction in Texas that is prepped to manufacture advanced chips. 

However,  Apple has concerns about using non-TSMC technology and may not ultimately move forward with another partner, Bloomberg added, citing people familiar with the matter. 

The AI boom has caused a supply-demand mismatch, as most companies have allocated resources to develop and build massive AI data centers and the high-performance chips required to run them. This has created a supply constraint, necessitating consideration of additional suppliers. 

Apple executives highlighted the supply disruption during the company’s latest quarterly earnings call last week, saying that a lack of chips for the iPhone and Mac was constraining growth. “We have less flexibility in the supply chain than we normally would,” outgoing Chief Executive Officer Tim Cook said. 

“I believe it will take several months to reach supply-demand balance,” Cook added. 

Intel’s key focus going ahead is to boost its foundry business by signing with more external customers under the management of CEO Lip-Bu Tan, with Samsung also following similar ambitions. 

INTC, AAPL, And TSM Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ for INTC and AAPL, with ‘high’ message volumes, while sentiment turned ‘bearish’ for TSM stock. 

AAPL has gained 4.5%, INTC has surged 193%, and TSM has risen 32% year-to-date.

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