May 8 (Reuters) - Apple (AAPL.O) and Intel (INTC.O) have reached a preliminary agreement for Intel to manufacture some of the chips that power the iPhone maker’s devices, the Wall Street Journal reported on Friday, citing people familiar with the matter.Intensive talks between the two companies have been underway for more than a year, and they hammered out a formal deal in recent months, the report said.Apple shares were up about 2%, while Intel’s stock extended gains and was last up about 14%.It is still unclear which Apple products Intel would make chips for, according to the report. Both companies did not immediately respond to a Reuters request for comment.

The global semiconductor sector experienced a strong surge, with the chip index jumping over 4%, outperforming the broader market and hitting a new all-time high! AMD, the computing power giant, saw its data center business grow by 57% in the first quarter and its second-quarter guidance significantly exceeded expectations, leading to a post-market surge of over 10%. Intel's stock price rose nearly 13% in a single day, boosted by rumors of Apple's contract manufacturing talks. Micron Technology and SanDisk, two major memory manufacturers, both hit new all-time highs overnight, driven by strong AI demand and expectations of locked-in long-term contracts. The "supercycle" in the semiconductor industry chain has not only not peaked, but is accelerating in a deeper and broader dimension.

The global semiconductor sector experienced a strong surge, with the chip index jumping over 4%, outperforming the broader market and hitting a new all-time high! AMD, the computing power giant, saw its data center business grow by 57% in the first quarter and its second-quarter guidance significantly exceeded expectations, leading to a post-market surge of over 10%. Intel's stock price rose nearly 13% in a single day, boosted by rumors of Apple's contract manufacturing talks. Micron Technology and SanDisk, two major memory manufacturers, both hit new all-time highs overnight, driven by strong AI demand and expectations of locked-in long-term contracts. The "supercycle" in the semiconductor industry chain has not only not peaked, but is accelerating in a deeper and broader dimension.

Storage and chip sectors rose across the board, and the super cycle continues!

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- Apple and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple's devices.  
- The negotiations have been ongoing for over a year, culminating in a formal deal in recent months.  
- Following the news, Apple shares rose approximately 2%, while Intel's stock increased by about 14%.

Apple, Intel have reached preliminary chip-making deal, WSJ reports