Intel stock extended its rally on Tuesday as investors weighed fresh reports about potential Apple manufacturing talks and stronger confidence in the company’s AI-linked turnaround strategy. INTC moved higher in premarket trading, adding to gains that followed Intel’s first-quarter results and upbeat second-quarter guidance. The latest move comes after Intel shares climbed sharply from their mid-April levels. The stock has drawn renewed attention as traders focus on artificial intelligence demand, data center growth, and the company’s effort to rebuild its foundry business. Apple Talks Fuel Intel Stock Rally Intel shares rose about 13% in premarket trading after a Bloomberg report said Apple held early discussions with Intel about possible chip manufacturing. The report said Apple has also spoken with Samsung as it explores ways to diversify its processor supply chain. Apple currently relies heavily on Taiwan Semiconductor Manufacturing Company for chips used in its iPhone, iPad, and Mac products. A potential Intel role in Apple’s manufacturing network would mark an important step for Intel’s foundry ambitions, although no agreement has been confirmed. Representatives for Intel and Apple declined to comment on the reported talks. The talks remain preliminary, and the report did not indicate that Apple has made a final decision on any new manufacturing partner. AI Demand Strengthens Turnaround Narrative Intel’s latest rally also follows stronger investor interest in its AI and data center businesses. The company reported $13.6 billion in first-quarter revenue, up 7% from a year earlier, while non-GAAP margins improved during the period. However, Intel still reported GAAP losses linked to restructuring costs and goodwill charges. Investors appeared to focus more on revenue growth, operational improvement, and management’s guidance for the second quarter. The company’s Data Center and AI unit remain central to the turnaround narrative. Demand for AI infrastructure has kept chip stocks in focus, while Intel is trying to position its CPUs, foundry services, and edge computing products inside that broader cycle. Intel has also made leadership changes to support its AI strategy. The company brought in Alex Katouzian from Qualcomm to lead Client Computing and Physical AI, while Pushkar Ranade has taken the chief technology officer role. Analysts Lift Targets After Earnings Several analysts raised their outlooks after Intel’s earnings update. Evercore ISI cited a possible CPU recovery and lifted its price target to $111. Other firms, including Tigress Financial and KeyBanc, issued targets in the $110 to $118 range. Citi, Roth Capital, and Freedom Broker also moved to more bullish ratings, with targets near the mid-$90s to $100 area. The upgrades suggest Wall Street is now treating Intel as more than a short-term earnings trade. Still, the stock’s sharp move has also created risk for short-term traders. Schwab data showed Intel was among high-beta technology names that faced net selling in April, along with Nvidia and AMD. That activity points to profit-taking after the rally. It also shows that traders may react quickly to any change in AI spending trends, foundry updates, or future guidance. Intel’s foundry business remains a major focus as the company tries to become a stronger U.S.-based manufacturing alternative. The company has invested heavily in production capacity and advanced process technology, yet winning large external customers remains a key test. A possible Apple order would be watched as Apple designs its own A-series and M-series chips. TSMC currently manufactures most of those processors, making any supply-chain shift important for chip investors.