Investing.com -- Intel shares have risen a further 6.6% in premarket trading on Monday, extending a remarkable run that has seen the chipmaker gain 125.6% over the past month and 230.7% year-to-date.

The latest run higher comes after a Wall Street Journal report said Apple has reached a preliminary agreement with Intel to manufacture chips for Apple devices. The news sent the stock surging 14% on Friday.

The report, citing people familiar with the matter, said the two companies have been in intensive talks for over a year and finalized a formal deal in recent months.

Details about which Apple products Intel would manufacture chips for remain unclear.

Lynx Equity analyst said the Journal report "adds more fire to a stock that has already been on fire this year," reiterating a preference for Intel over AMD and setting a price target of $175.

"With the involvement of two major entities, fears of the sustainability of IFS should decline in the minds of investors," the analyst wrote.

Lynx cautioned that near-term monetization of the potential deal could remain limited given process development requirements, but said investors are unlikely to wait for that.

The firm also flagged a positive read-through for semiconductor capital equipment names, expecting ASML, Lam Research, Applied Materials, and KLA to benefit, though noting a meaningful bump in wafer fab equipment spending is unlikely before 2028.