Intel’s revival narrative gains steam on Wall Street as talks with Apple and TSMC surface

Wall Street is wagering that Intel’s long decline may be giving way to a turnaround. Options traders have rushed into bullish bets on the U.S. chipmaker, just as reports surfaced that the company has approached Apple and Taiwan Semiconductor Manufacturing Company (TSMC) about potential partnerships and investments.

Volatility in Intel’s three-month options spiked this week to its highest level since markets tumbled in April after Donald Trump announced tariffs. But unlike then, when investors scrambled for protection against losses, today’s surge is fueled by optimism. Traders are buying call options, wagers that pay off if the stock continues to rise. The premium of calls over puts climbed to its widest level since records began in 2013.

Much of the activity is concentrated in short-term trades. Options expiring Friday accounted for more than a third of total turnover, a sign of heightened speculation around Intel’s near-term trajectory. Since September 17, Intel’s stock has jumped 37%, closing Thursday at $33.99.

The bullish options frenzy reflects Intel’s recent efforts to reassert itself in a semiconductor industry that has left it behind. The onetime leader, which once put the “silicon” in Silicon Valley, has struggled to match the pace of Taiwan’s TSMC in advanced chip manufacturing and has been eclipsed by Nvidia in the AI boom.

In response, Intel has sought high-profile backers. In August, the U.S. government converted $10.9 billion in subsidies into a nearly 10% equity stake, ensuring Intel’s role in Washington’s push for domestic chipmaking. SoftBank quickly followed with a $2 billion investment for a 2% stake, and Nvidia last week pledged $5 billion for roughly 4%.

Now, Intel is pursuing other strategic alliances. Bloomberg reported this week that Intel has approached Apple about a potential investment, reviving ties with a company it supplied processors to for more than a decade. On Thursday, the Wall Street Journal reported that Intel has also reached out to TSMC about possible investment or partnership opportunities.

Intel has poured billions into its foundry division but has struggled to attract external customers in the face of TSMC’s dominance. Earlier this year, the Information reported that the two companies had discussed a joint venture in which TSMC would take a 20% stake. Both companies declined to comment on the latest speculation.

Any partnership with Apple would carry both financial and political weight. Apple has little incentive to return to Intel-designed processors, having successfully transitioned to its own chips made by TSMC. But Intel’s foundry could serve as an alternative manufacturing partner, while an investment might also help Apple align with Washington’s industrial policy.

Apple CEO Tim Cook pledged in August to invest $600 billion in U.S. production over four years. A stake in Intel, part-owned by the U.S. government and positioned at the heart of domestic chipmaking efforts, could fit neatly into that commitment.

For now, investors are betting that government support, corporate alliances, and strategic talks could give Intel a second act. Whether these moves will restore its technological competitiveness remains uncertain. But with options traders piling into record bets, Wall Street is signaling that the chipmaker’s fortunes may finally be shifting.