Apple's (AAPL) reported deal with Intel (INTC) to design and build chips in the US could strengthen the iPhone maker's efforts to diversify its supply chain and secure domestic semiconductor capacity ahead of a multiyear AI-driven device cycle, Wedbush Securities said in a report Thursday.
The deal, announced by President Donald Trump, comes as Apple seeks to reduce its reliance on Asian manufacturing and expand US-based production. Wedbush said the partnership would represent a significant opportunity for Intel as Apple increases investment in advanced chips amid rising AI demand.
The investment firm said Apple could raise prices on future devices, including its next iPhone lineup, to offset rising memory and storage chip costs, arguing the company is well positioned to pass higher component expenses on to consumers without materially affecting demand.
Wedbush maintained an outperform rating on Apple and a $400 price target, citing the company's supply-chain diversification strategy and investments in US manufacturing capacity.
Price: $299.13, Change: $+3.18, Percent Change: +1.07%