The WSJ is reporting that Intel and Apple have reached an agreement for Apple to use Intel’s Foundry business for chip making. It’s not clear yet which chips Intel will make for which Apple products. Earlier this week, Bloomberg reported talks between the sides, something that had been a rumored open secret for months.
The WSJ noted that the White House advocated for the deal. Regardless of how any of us might feel about the government trying to influence suppliers for companies, it was obvious that President Trump has an incentive to see Intel succeed. That assumed support was part of DKI’s thesis when we started buying the stock around $35 in November.
Information contained in this report is believed by Deep Knowledge Investing (“DKI”) to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied and DKI makes no representation as to the completeness, timeliness or accuracy of the information contained therein or with regard to the results to be obtained from its use. The provision of the information contained in the Services shall not be deemed to obligate DKI to provide updated or similar information in the future except to the extent it may be required to do so.
The information we provide is publicly available; our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion are precisely that and are subject to change. DKI, affiliates of DKI or its principal or others associated with DKI may have, take or sell positions in securities of companies about which we write.
Our opinions are not advice that investment in a company’s securities is suitable for any particular investor. Each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose.
In no event shall DKI be liable for any costs, liabilities, losses, expenses (including, but not limited to, attorneys’ fees), damages of any kind, including direct, indirect, punitive, incidental, special or consequential damages, or for any trading losses arising from or attributable to the use of this report.
