Intel's Mac Exit Party Stock Soars as Apple Dumps Chips!

Intel Stock (NASDAQ:INTC) Blasts Up as Mac Support Dies

New reports detailing the end of Intel processors in Apple Mac computers seemingly should have negatively impacted chip stock Intel (INTC). However, the market reacted with surprising enthusiasm, sending shares soaring over 8% in Tuesday afternoon's trading. This unexpected surge begs the question: Why?

The catalyst for this market shift? Reports indicate that MacOS Tahoe will be the last version of MacOS to support Macs using Intel processors. This affects several older MacBook Pro, iMac, and Mac Pro models. While users of these machines will still receive updates with the launch of Tahoe, they face a significant limitation: Apple Intelligence will be exclusive to Macs powered by Apple processors.

The gradual phasing out of Intel chips from Apple products has been anticipated for some time. Apple began its transition to its own processors five years ago, promising to support Intel processors "…for years to come." That promise appears to have been kept, with the end now arriving.

So, what fueled this unexpected rally for Intel? The positive momentum appears to stem from a combination of factors:

• Sector-Wide Boost: The entire chip sector benefited from renewed trade discussions with China. Hopes for "…looser export restrictions" between the U.S. and China created a positive "halo effect" for Intel.
• Department of Defense Developments: Intel also gained ground following news that the Department of Defense (DoD) is likely to offer "…operational technology-specific zero trust guidance," according to Intel’s federal chief technology officer.

This DoD initiative aims to provide specific cybersecurity protections for military systems, including:

• Weapons systems
• Sensor arrays
• Shipyard systems

This move signals a significant potential growth area for Intel's cybersecurity solutions.

Is Intel a Buy, Hold, or Sell?

Wall Street analysts currently hold a "Hold" consensus rating on INTC stock. This is based on:

• 1 Buy rating
• 26 Hold ratings
• 4 Sell ratings

assigned in the past three months. Despite a 33.76% decrease in share price over the past year, the average INTC price target of $21.29 per share suggests a potential 3.88% downside risk.

While the loss of Apple as a customer for some desktop hardware is a notable event, Intel's recent stock performance demonstrates the company's resilience and ability to capitalize on new opportunities in other sectors. The positive developments in trade relations and the potential for increased government contracts in cybersecurity have injected new life into INTC, showcasing that even in the face of apparent setbacks, Intel continues to evolve and adapt within the dynamic tech landscape.

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Tags: Intel stock, Apple Mac, MacOS Tahoe, Intel processors, Apple Intelligence, INTC, AAPL, chip stock, tech news, market update

Source: https://www.tipranks.com/news/intel-stock-nasdaqintc-blasts-up-as-mac-support-dies