Intel (INTC) Looks to Enter New Year With Major Seal of Approval

American semiconductor giant Intel Corp. (INTC) has been facing a challenging few years due to intensifying competitive threats and its failure to deliver promised processor upgrades. However, the company is now nearing a major seal of approval, according to TF Financial analyst Ming-Chi Kuo.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential The analyst reported earlier this month that Intel and Apple, Inc. (AAPL) are in talks for a partnership under which the chipmaker would manufacture some of Apple's custom designs for MacBook Air and iPad Pro devices, starting in 2027 (M6 or M7 chips). According to the analyst, the two companies have signed an NDA to evaluate the efficacy of Intel's 18A node for this purpose. I am bullish on the prospects for Intel as I believe the company is finally on the right track, aided by federal government investments and key technological improvements. An iPhone Deal Could Validate The IDM 2.0 Strategy Although my bullish stance on Intel does not hinge on the company securing a fabrication partnership with Apple, I believe this rumored partnership could immediately validate the company's IDM 2.0 strategy. This is due to the substantial revenue increase for the foundry business. As of today, Intel's foundry revenue is negligible. According to GF Securities analyst Jeff Pu, Apple is expected to enter into a manufacturing agreement with Intel for the production (not design) of certain iPhone chips starting in 2028. According to Pu, these chips would be used in non-Pro iPhone models (for example, iPhone 20 and iPhone 20e). This would represent significant progress for Intel beyond supplying M6 or M7 chips for MacBook Air and iPad Pro devices.