Intel spikes on news of a deal to make chips for Apple devices

The move: Intel stock soared as much as 19% on Friday, before paring some of that gain. Shares of the software giant are up 240% year-to-date. The agreement, which was hammered out in talks that spanned over a year, involves Intel producing some of the chips for Apple's devices. The government's 10% stake in Intel played a critical role in the deal being struck, the report said. Apple shares ticked 1% higher. Shares of the iPhone parent are up 8% year-to-date. What it means: The deal has added more fuel to Intel's stock rally in recent months, with the chipmaker soaring after posting stellar results over the first quarter. Intel has been on a notable uptrend since August of last year, when the US government first acquired a large stake in the company. The government's stake in the chip maker since it first invested last August has grown significantly. The $8.9 billion investment is worth around $55 billion after Friday's big rally. The gains have also been fueled by the renewed optimism in the AI sector, which has regained its leadership of the market amid the volatility of the Iran war. The tech-heavy Nasdaq 100 is up 17% in a month, surpassing the S&P 500's 9% gain.