The Motley Foolยท2025-03-12 16:57Economic Overview - The latest inflation report showed a year-over-year increase of 2.8% in February, with a month-over-month decrease of 0.2%, both better than economists' expectations of 2.9% and 0.3% respectively [4][5] - Core inflation, excluding food and energy, rose 3.1% year-over-year and 0.2% month-over-month, also lower than the expected 3.2% and 0.3% [5] Semiconductor Industry Developments - A potential collaboration among Nvidia, Broadcom, and Advanced Micro Devices, facilitated by TSMC, aims to operate Intel's foundry, with TSMC managing the factories while owning less than 50% of the joint venture [7] - The discussions were initiated by a request from President Donald Trump to assist Intel in its turnaround efforts, with any deal requiring approval from the Trump administration [8] - Intel reported a revenue decline of 2% in 2024 and a loss of $18.8 billion, marking its worst performance since 1986, highlighting its ongoing struggles [9][10] Market Reactions - Following the positive inflation news and potential collaboration, shares of Nvidia, Intel, TSMC, and Broadcom saw significant increases, with Nvidia rising 6.7%, Intel 4.2%, TSMC 3.7%, and Broadcom 3.7% [3][11] - The semiconductor companies are now trading at more attractive valuations, with forward earnings multiples of 30 for Broadcom, 26 for Nvidia, and 20 for TSMC, following a recent market downturn [12]