Intel stock jumped 9% after Trump announced the company would partner with Apple on chip design in the United States. The president said this. The market believed him. Shares went up.
Apple designs its own chips. They've done this for years. They use TSMC to manufacture them in Taiwan. Intel manufactures chips but can't seem to design ones that work as well as the ones Apple already makes. The partnership solves a problem neither company has by combining Apple's thing with Intel's different thing in a way that makes no technical sense.
Retail traders saw the headline and bought Intel at the top of a 9% surge because that's what you do when the president announces a partnership that may or may not exist between two companies that already do the things the partnership is supposedly for. Someone bought at $23. Someone else will sell at $21 next week. The circle of life continues.
Intel has spent years getting its ass kicked by AMD, TSMC, and Nvidia while burning through CEOs like a feudal kingdom during a plague. They fired their last guy. They hired a new guy. The new guy said they'd make chips for other companies. The stock dropped anyway. Now Trump says they'll work with Apple and everyone forgets Intel's foundries can't match TSMC's process nodes.
The technical analysis says Intel broke through resistance at $22 on high volume. The fundamental analysis says the company just got a presidential endorsement for something that might happen. Both analyses agree you should've bought yesterday.
Apple has not confirmed the partnership. Intel has not explained what the partnership means. Trump has moved on to his next announcement. Your shares are worth 9% more than they were this morning and you have no idea why.
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