Intel's stock has surged 25% over the past week, driven by strong demand for AI-related semiconductors and preliminary talks with Apple for chip manufacturing. Despite a recent 6.82% pullback to $120.61 due to profit-taking, the stock rebounded 3% in pre-market trading. The potential Apple deal could significantly boost Intel's revenue, with analysts estimating a $35 billion to $40 billion opportunity. The semiconductor sector is experiencing a rally, fueled by AI demand, with Intel positioned to benefit from evolving AI infrastructure needs. However, Intel's exposure to China remains a concern, as restrictions on foreign chips create uncertainty. Additionally, Intel's foundry business reported a $2.4 billion loss in Q1 2026, highlighting ongoing challenges despite aggressive investment in advanced manufacturing.