Intel is concluding the week with remarkable momentum. Shares of the resurgent chipmaker recently surpassed all-time highs that had been in place since 2000 and have continued to rise. In Friday trading, the stock experienced a notable increase, driven by reports indicating that the company was nearing a deal to manufacture chips for a prominent client among the Magnificent 7. This agreement would represent a significant achievement in the company’s prolonged efforts to reverse its fortunes.

Intel and Apple “have reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices,” as reported on Friday, citing people familiar with the matter. The report indicated that preliminary discussions were taking place between the companies. Intel refrained from commenting on the report. Apple failed to provide a response to Investopedia’s request for comment prior to the publication deadline. Intel’s shares experienced a notable increase of 13%, positioning them as one of the leading gainers within the S&P 500, coinciding with an upswing in broader market performance. The action has resulted in an increase of over 200% in the stock this year and nearly 500% over the preceding 12 months.

The recent developments have contributed to an extended upward trajectory for Intel, supported by a favorable environment for semiconductor stocks in general. The PHLX Semiconductor index, or “SOX,” has risen approximately 5% today, marking an increase of around 162% over the past year. Robust earnings, attributed by management to “unprecedented demand” for chips facilitating the AI expansion, have recently bolstered Intel shares—and, for the time being, alleviated valuation concerns raised by some analysts following other recent upward movements.