Forget the Fed: Stocks are setting new highs once again after Nvidia's blockbuster Intel deal

Core Insights - Nvidia announced a $5 billion investment in Intel, leading to a significant rally in chip stocks and contributing to record highs for the S&P 500 and Nasdaq Composite [1][5] - Nvidia shares increased by 3%, while Intel's stock surged by up to 28%, marking year-to-date gains of 30% for Nvidia and 53% for Intel [2][3] Company Developments - The partnership will focus on jointly developing custom products, with Nvidia integrating Intel's chips into its AI infrastructure for data centers, and Intel incorporating Nvidia's chips into its PC systems [3][5] - This collaboration is seen as a transformative move for Intel, positioning the company prominently in the AI sector, especially following recent government investments [4] Market Reactions - The announcement of the Nvidia-Intel deal catalyzed a rally in chip stocks, overshadowing a previously anticipated 25 basis-point rate cut by the Federal Reserve [1][4] - Major players in the chip industry, including Intel, Synopsys, and ASML, were among the top movers in the market following the news [5]