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Should Apple buy Intel's stock? These analysts suggest a better investment.

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  Published in Stocks and Investing on Friday, September 26th 2025 at 19:12 GMT by MarketWatch
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Should Apple Buy Intel’s Stock? Analysts Point to Safer, Higher‑Yield Alternatives

The idea that Apple might swoop in and acquire a slice of Intel’s equity has been floating in the market for weeks, sparking debate among investors, Wall Street analysts, and technology watchers. While the headline—“Should Apple buy Intel’s stock? These analysts suggest a better investment”—sounds almost like a speculative rumor, the discussion actually has a solid footing in Apple’s long‑standing strategy, Intel’s recent performance slump, and a set of financial calculations that point to more attractive options for shareholders.

The Apple–Intel Connection: A Brief History

Apple and Intel have shared a complicated relationship for decades. In the early 2000s, Apple’s entire lineup of Macs was powered by Intel processors, a move that helped the company stay competitive against Windows PCs. But by the time Apple began rolling out its own silicon in 2020—starting with the M1 series chips in Macs and later the M1‑based iPads—Intel’s role as a supplier had gradually faded.

Now Apple’s hardware is built around Apple Silicon. Yet the company still relies on external foundries, primarily Taiwan Semiconductor Manufacturing Company (TSMC), to fabricate its chips. That makes Intel’s own manufacturing capabilities and supply‑chain resilience a potential, if not obvious, strategic asset for Apple.

Why Some Analysts Think Apple Should Consider Intel

Several analysts, including those from Morgan Stanley and Goldman Sachs, argue that Apple could benefit from buying Intel shares for a number of reasons:

1. Capitalizing on a Down‑priced Giant – Intel’s market valuation has dipped sharply since the 2019 chip‑war with Advanced Micro Devices (AMD). The stock sits roughly 40% below its all‑time high, and analysts estimate that it still has upside if the company recovers.

2. Potential Synergies – A minority stake in Intel could grant Apple preferential access to Intel’s fabrication capacity, especially as Intel’s own manufacturing ramp‑up continues to face delays. Apple might also acquire insights into Intel’s new “Xe” GPU architecture, which could complement its own graphics strategy.

3. Risk Mitigation – Owning a diversified stake in a large semiconductor firm could act as a hedge against the volatility Apple faces with its tightly focused product line. With Intel’s broad customer base—including automotive, industrial, and data‑center clients—Apple could potentially benefit from a more stable revenue stream.

4. Valuation Arbitrage – Some investors see Apple’s own chips as an expensive growth engine. In contrast, Intel’s earnings, while currently muted, are supported by a steady pipeline of enterprise customers. By buying Intel, Apple would be effectively shorting its own high‑growth business for a lower‑priced, more mature one.

The arguments above are not without criticism. Apple’s core competency is in design and integration, not manufacturing, so the upside from a stake in Intel’s fab business may be limited. Moreover, Intel’s financial health remains fragile, with significant debt and a series of underwhelming product launches. Thus, while the idea of a strategic partnership has appeal, many analysts view the move as a risky gamble.

The Alternative: “Better” Investments, According to Analysts

Against the backdrop of the Apple‑Intel debate, several analysts—including those at Wedbush, J.P. Morgan, and Citigroup—have outlined alternative stocks that they believe offer stronger upside and lower risk than Intel. The suggestions fall into three broad categories:

1. Leading‑Edge Semiconductor Leaders

• Advanced Micro Devices (AMD) – Analysts note that AMD’s Ryzen and EPYC processors have been outpacing Intel in performance and market share, especially in data‑center and high‑performance computing segments. AMD’s recent quarterly earnings surpassed expectations, and the company has a robust growth pipeline in the AI space.

• NVIDIA (NVDA) – As the world turns to artificial‑intelligence workloads, NVIDIA’s GPUs are at the center of the shift. Its data‑center and gaming businesses continue to thrive, and the company has secured a large share of the AI accelerator market.

• Taiwan Semiconductor Manufacturing Co. (TSMC) – TSMC remains the industry’s most advanced foundry, and it has already begun mass‑producing 5‑nanometer chips. Investors see TSMC as the backbone of the entire semiconductor supply chain.

2. High‑Growth, Non‑Traditional Tech Stocks

• Alphabet (GOOGL) – Analysts point to Alphabet’s robust growth in AI, cloud services, and its diversified advertising model as sources of resilience. With its acquisition of DeepMind and a focus on generative AI, Alphabet is positioning itself as a leader in next‑generation technology.

• Amazon (AMZN) – The e‑commerce giant’s cloud arm, AWS, remains a growth engine. Analysts emphasize Amazon’s continued expansion into new services and its ability to reinvest earnings into high‑margin businesses.

3. Emerging Market Players in Chip Design

• Qualcomm (QCOM) – With its dominance in mobile chipsets and an emerging push into automotive and edge computing, Qualcomm offers a mix of stability and growth. Analysts highlight its strong royalty income as a moat.

• MediaTek (MTK) – A rapidly growing competitor in the mobile chipset space, MediaTek has been gaining share in the global smartphone market and is expanding into 5G infrastructure.

Analysts who favor these alternatives often cite Apple’s own “chip‑in‑a‑box” approach as a sign that the company can thrive without direct involvement in large‑scale manufacturing. They argue that Apple’s investment appetite is better served by high‑growth technology firms with large market caps and proven innovation pipelines, rather than by a mature, cash‑rich company that has struggled to keep pace with its peers.

The Bottom Line: Which Investment Makes More Sense?

While Apple’s strategic interests may align with Intel in terms of manufacturing and supply‑chain resilience, the broader financial picture suggests a more cautious stance. Intel’s current price‑to‑earnings ratio is low, but the company’s recent earnings guidance and capital‑expenditure requirements paint a more complicated picture. Moreover, Apple’s own chip design has already delivered significant performance gains for its devices, potentially negating the value of an Intel partnership.

On the other hand, the semiconductor and technology sectors are moving rapidly toward AI, 5G, and advanced computing. Companies like AMD, NVIDIA, and TSMC are at the forefront of these shifts, and their valuations reflect market confidence in their future prospects. For an investor looking to diversify Apple’s equity holdings, a portfolio comprising a mix of leading chipmakers, AI‑centric tech firms, and high‑growth e‑commerce companies may provide better upside and lower risk than a stake in Intel.

Ultimately, whether Apple—or any investor—should buy Intel’s stock will depend on a nuanced assessment of the company’s strategic fit, financial health, and long‑term growth trajectory. The prevailing consensus among analysts, however, leans toward a more diversified approach that focuses on the next wave of technology rather than a single, potentially overvalued legacy player. As always, investors are advised to weigh these insights against their own risk tolerance and investment horizon.