TNB Tech Minute: Apple and Intel Reach Preliminary Chip-Making Deal

Summary

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WSJ Tech News Briefing: Tech Minute – Apple and Intel Reach Preliminary Chip-Making Deal

Date: May 8, 2026
Host: Julie Chang, The Wall Street Journal

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Episode Overview

In this concise Tech Minute, Julie Chang delivers a rapid-fire digest of major tech industry stories of the day. The key highlight: WSJ's exclusive reporting on a landmark, preliminary chip-manufacturing deal between Apple and Intel. The episode also covers Nintendo’s financial outlook and Akamai’s surge on the S&P 500. Listeners receive sharp insights into corporate maneuvers and shifting dynamics across the tech landscape.

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Key Discussion Points & Insights

1. Apple & Intel: Preliminary Chip-Manufacturing Deal

[00:32]

• WSJ Exclusive: Apple and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple devices.
• Background: The deal follows over a year of negotiations, first covered by Bloomberg.
• Important Note: The agreement marks a significant diversification move for Apple, whose main supplier has been TSMC.
• Specifics Undisclosed: It’s not yet clear which Apple devices or product lines will use the Intel-manufactured chips.
• Official Stance: Neither Apple nor Intel commented on the deal.

Government Involvement

• The Trump administration played a “key role” in making this happen.
• Strategic Move: Last summer, the U.S. government converted nearly $9 billion in federal grants into Intel stock, yielding a 10% government stake in the company.

Notable Quote:

“The Trump administration played a key role in making the deal happen. The administration last summer struck a deal to convert nearly $9 billion in federal grants into Intel stock, giving the U.S. government a 10% stake in the chipmaker.”
— Julie Chang [01:14]

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2. Nintendo’s Outlook: Strong Results, Cautious Forecast

[01:32]

• FY2025 Earnings: Nintendo’s net profit for the 12 months ended March soared 52% to $2.7 billion, surprising analysts.
• 2026 Projection: Company forecasts indicate an 11% drop in revenue and a 27% decline in net profit for the new fiscal year.
• Product Focus: Sales guidance for the upcoming Switch 2 console is set at 16.5 million units, down from nearly 20 million the prior year.
• Strategy: Nintendo continues diversifying beyond gaming—expanding into movies, theme parks, and other entertainment by leveraging popular game characters (e.g., Super Mario, Zelda).

Notable Quote:

“The company has been trying to diversify its revenue streams beyond video games. It's expanded into movies, theme parks and other forms of entertainment by leveraging… its popular characters and game titles.”
— Julie Chang [01:59]

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3. Akamai’s Rally: Cloud Infrastructure Momentum

[02:14]

• Market Movement: Akamai’s stock surged over 26%, leading the S&P 500 for the day.
• Revenue Growth: In Q1, Akamai’s cloud infrastructure business revenue jumped 40% to $95 million.
• Deal Highlight: Akamai secured a $1.8 billion cloud services agreement with a “leading frontier model provider” (likely referencing a cutting-edge AI or tech entity).
• Context: The rally marks a rebound for Akamai after April’s selloff, fueled by investor worries over new competition from Anthropic, an AI company.

Notable Quote:

“Revenue in Akamai's cloud infrastructure business jumped 40% to $95 million in the first quarter of the year… Shares of the company are recovering from a sharp sell off in April on investor concerns that a new offering from Anthropic could hurt demand for Akamai services.”
— Julie Chang [02:27]

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Memorable Moments & Quotes

• On Apple-Intel-Government Synergy:
  “The Trump administration played a key role in making the deal happen… giving the U.S. government a 10% stake in the chipmaker.” [01:14]

• Nintendo’s Diversification Playbook:
  “It's expanded into movies, theme parks and other forms of entertainment by leveraging… its popular characters and game titles.” [01:59]

• Akamai’s Comeback:
  “Revenue in Akamai's cloud infrastructure business jumped 40%… Shares of the company are recovering from a sharp sell off in April…” [02:27]

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Timestamps for Key Segments

• [00:32] — Apple & Intel preliminary chip deal revealed
• [01:14] — U.S. government’s strategic investment in Intel
• [01:32] — Nintendo’s robust year and new fiscal guidance
• [01:59] — Nintendo’s expansion beyond gaming
• [02:14] — Akamai’s market surge and major cloud deal
• [02:27] — Akamai recovers from AI-related selloff

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This episode succinctly captures pivotal shifts in tech business strategy, policy intervention, and market dynamics, providing listeners with actionable awareness of where the industry is heading.

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Transcript

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[Julie Chang]

your afternoon TNB Tech Minute for Friday, May 8th. I'm Julie Chang for the Wall Street Journal. We exclusively report that Apple and Intel have reached a preliminary agreement for intel to manufacture some chips for Apple devices. People familiar with the matter say the deal follows more than a year of intensive talks, which were first reported by Bloomberg. While it remains unclear which specific products the chips are for, the move helps Apple diversify beyond its primary supplier, tsmc. Representatives for both companies declined to comment. The Trump administration played a key role in making the deal happen. The administration last summer struck a deal to convert nearly $9 billion in federal grants into intel stock, giving the U.S. government a 10% stake in the chipmaker. Nintendo projected a softer year ahead despite reporting strong annual earnings for the 12 months ended March, the Japanese video game maker's net profit rose 50 52% to about $2.7 billion, beating analyst estimates for the current fiscal year. Nintendo projected revenue would drop 11% and net profit would fall 27%. The company said it expects to sell 16.5 million Switch 2 consoles. That's down from almost 20 million units sold the previous fiscal year. The company has been trying to diversify its revenue streams beyond video games. It's expanded into movies, theme parks and other forms of entertainment by leveraging merging its popular characters and game titles. And Akamai's stock closed up over 26%, leading the S&P 500. Akamai is a cloud infrastructure and cybersecurity company. The company said it had inked a $1.8 billion deal with a leading frontier model provider to provide cloud infrastructure services. Revenue in Akamai's cloud infrastructure business jumped 40% to $95 million in the first quarter of the year, per the company. Y shares of the company are recovering from a sharp sell off in April on investor concerns that a new offering from Anthropic could hurt demand for Akamai services. And that's your TMB Tech minutes. Check back Monday for another quick tech update.

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