The AMD vs Intel stock battle reached a new intensity. Advanced Micro Devices (NASDAQ: AMD) shares hit a one-year high, while rival Intel Corporation (NASDAQ: INTC) soared nearly 14% after reports emerged of a preliminary chip-making agreement with Apple Inc. (NASDAQ: AAPL). Research and private equity firm Lynx Equity has seen enough; it is picking Intel.
Figure 1: Lynx Equity logo [Courtesy: Lynx Equity]
“We continue to prefer Intel over Advanced Micro Devices,” Lynx Equity stated in its latest note. The firm added that the reported Apple chip deal “adds more fire to a stock that has already been on fire this year.” Both companies are among the most closely watched AI chip stocks 2026 has produced.
Intel’s Apple Chip Deal: What the Agreement Means
Apple and Intel reportedly reached a preliminary deal under which Intel would act as a contract manufacturer, meaning Apple would continue to design its chips internally while Intel fabricates them through its foundry division.
The deal comes after more than a year of negotiations between the two companies and is considered one of the most strategically significant semiconductor partnerships in recent years, according to a Wall Street Journal report.
Figure 2: Intel and Apple logos displayed together following reports of a preliminary chip manufacturing agreement [Courtesy: Reuters]
The Intel Apple chip deal represents a massive milestone for Intel’s foundry business, which has also recently secured deals with Tesla and SpaceX. The Company has been working to rebuild its manufacturing capabilities to compete with TSMC.
Why the Apple Win Matters for Intel Foundry
Intel’s foundry division is now expected to break even in 2027, supported by deals with Amazon, Microsoft, the United States Government, Tesla, and now Apple.
The Apple agreement represents the latest win for a business that had once been considered a candidate for spin-off.
For years, Intel’s foundry business faced delays and low yields that cast doubt on its ability to manufacture chips for external clients. Analysts now view the Company as having moved through the rough patch and established itself as a credible second-source manufacturer.
For investors tracking the AMD vs Intel stock battle, the Intel Apple chip deal has fundamentally shifted the conversation about Intel’s foundry survival.
Lynx Equity’s Bull Case for INTC
Lynx Equity laid out several reasons for preferring Intel among AI chip stocks 2026:
- The Intel Apple chip deal should ease concerns about the sustainability of Intel’s chip foundry business
- Intel’s participation in Elon Musk’s SpaceX Terafab chip manufacturing project, valued at US$119 billion, adds further foundry credibility
- Investor portfolios are being adjusted to reflect the Apple deal’s implications
- Lynx Equity sees INTC stock potentially heading for US$175 per share
- Intel has been and remains Lynx Equity’s best idea pick for 2026
AMD’s Record Quarter: The Case for the Other Side
While Lynx Equity favours Intel in the AMD vs Intel stock debate, Advanced Micro Devices delivered results that gave its own investors little reason for concern.
AMD reported first-quarter 2026 revenue of US$10.3 billion, with a gross margin of 53% and net income of US$1.4 billion. Data centre segment revenue was US$5.8 billion, up 57% year-over-year, driven by strong demand for AMD EPYC processors and the continued ramp of AMD Instinct GPU shipments.
Figure 3: AMD branding [Courtesy: Network World]
Dr Lisa Su, AMD chair and CEO, said the Company delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with data centre now the primary driver of revenue and earnings growth.
AMD’s Pipeline and Forward Guidance
AMD delivered its fourth consecutive quarter of record server CPU revenue during Q1 2026. The Company now expects server CPU revenue to grow by more than 70% year-over-year in the second quarter, with robust growth continuing through the second half of 2026 and into 2027 as next-generation EPYC processors ramp.
Meta and AMD announced plans to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first 1-gigawatt deployment powered by a custom AMD Instinct MI450-based GPU.
Meta will also serve as a lead customer for AMD’s upcoming sixth-generation EPYC CPUs. These are the kinds of landmark customer commitments that have propelled AMD into the front rank of AI chip stocks 2026.
Share Price Impact
All share price data is based solely on the information provided at the time of publication. Advanced Micro Devices (NASDAQ: AMD) shares hit a one-year high surging approximately 42% over the prior five trading days.
Intel Corporation (NASDAQ: INTC) shares rose nearly 14%, also up approximately 42% over the prior five trading days. Including all the gains, AMD shares had surged by more than 66% year-to-date in 2026.
Intel Apple chip deal news triggered the single-day INTC spike. For real-time price data, investors should refer to NASDAQ directly.
Industry Outlook
The global semiconductor sector is experiencing a structural shift toward AI-driven demand. AMD now projects the server CPU market to grow at more than 35% annually through 2030, reaching US$120 billion, a significant upgrade from its prior forecast of around 18% compound annual growth.
As AI infrastructure spending accelerates across cloud, enterprise, and government clients, the AMD vs Intel stock rivalry is increasingly being judged through the lens of which Company can capture more of the AI workload.
The Intel Apple chip deal signals that foundry credibility is now a core variable in how markets price AI chip stocks 2026.
Future Direction and Impact on AI Chip Investors
The events carry meaningful implications for investors assessing both AMD vs Intel stock positions:
- The Intel Apple chip deal is preliminary and specific chip types, volumes, and timelines remain undisclosed
- A credible Apple track could lower perceived execution risk, improve Intel’s negotiating posture with future foundry customers, and support a higher valuation multiple on currently heavy and underutilised manufacturing assets
- AMD’s Q2 2026 revenue guidance of approximately US$11.2 billion exceeded consensus estimates of around US$10.5 billion, signalling continued earnings momentum
- Lynx Equity’s US$175 price target for INTC reflects a bullish re-rating tied to foundry validation
- TipRanks’ Stock Comparison tool shows AMD carries a Strong Buy consensus rating on Wall Street, with an average price target of US$440.45
- Both companies face analyst-flagged downside risks, though AMD is viewed as presenting the lesser risk to investors
- The competition between these two AI chip stocks 2026 is now as much about foundry credibility as it is about chip design
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Frequently Asked Questions
Q1. Why did Intel stock surge nearly 14%?
Ans. Intel shares rose sharply after the Wall Street Journal reported a preliminary chip-making agreement between Apple and Intel’s foundry division, boosting confidence in Intel’s turnaround strategy.
Q2. Who does Lynx Equity prefer in the AMD vs Intel stock debate?
Ans. Lynx Equity has consistently preferred Intel, citing the Intel Apple chip deal and Intel’s role in SpaceX’s Terafab project. The firm sees INTC potentially reaching US$175 per share.
Q3. How did AMD perform in Q1 2026?
Ans. AMD reported revenue of US$10.3 billion, up 38% year-over-year. Data centre revenue reached US$5.8 billion, up 57%, driven by EPYC CPUs and Instinct GPU shipments.
Q4. What is Intel’s foundry business?
Ans. Intel Foundry is the contract manufacturing arm of Intel, which fabricates chips for external clients. The Apple deal would make Apple one of its most prominent customers alongside Amazon, Microsoft, Tesla, and SpaceX.
Q5. Which AI chip stock is considered safer by analysts?
Ans. AMD carries a Strong Buy consensus rating with an average price target of US$440.45. Analysts see AMD as posing a lesser downside risk compared to Intel, despite Intel’s recent foundry momentum.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. Content is based on reporting published online. Share price figures reflect data provided in source material at the time of publication. Investing in securities involves risk, including the possible loss of principal. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
Sources
https://www.tipranks.com/news/amd-vs-intel-inside-the-chip-war-this-analyst-picks-a-side
https://www.cnbc.com/2026/05/08/intel-stock-apple-chip-deal.html
Last modified: May 9, 2026
