About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Intel on Monday warned of "adverse reactions" from investors, employees and others to the Trump administration taking a 10% stake in the company, in a filing citing risks involved with the deal. A key concern area is international sales, with 76% of Intel's revenue in its last fiscal year coming from outside the U.S., according to the filing with the Securities and Exchange Commission. The company had $53.1 billion in revenue for fiscal year 2024, down 2% from the year prior.For Intel's international custom ...

Core Insights - The U.S. government acquired approximately a 10% equity stake in Intel, valued at about $11 billion, through the conversion of existing subsidies and grants rather than new taxpayer funds [1][2] - The equity stake is part of a broader initiative to enhance domestic chip manufacturing and secure semiconductor supply chains [2][4] - The transaction represents a significant shift from direct subsidies to ownership models, allowing taxpayers to benefit from corporate performance [3] Group 1: Government Involvement - The equity stake includes approximately $5.7 billion from CHIPS Act allocations, $3.2 billion from the Secure Enclave program, and $2.2 billion in prior federal support [2] - This move is framed as a "great deal" for the U.S., supporting job creation and national competitiveness [3] Group 2: Intel's Market Position - Intel is a key beneficiary of U.S. efforts to reshore semiconductor capacity amid competition from Asian rivals and supply chain disruptions [4] - The company's stock has recently rallied due to optimism surrounding AI-driven demand, CHIPS Act funding, and government-backed equity support [4]

Core Viewpoint - The Trump administration's acquisition of an 8.9% equity stake in Intel highlights the problematic trend of government involvement in business, which often leads to inefficiencies and market distortions rather than progress or innovation [1][7][15]. Government Involvement in Intel - Intel has been a beneficiary of government subsidies since the America COMPETES Act was signed in 2007, with continued support through various administrations, culminating in the recent equity stake by the Trump administration [4][5]. - The rationale for converting $5.7 billion in unpaid CHIPS Act grants into equity includes stabilizing the semiconductor supply chain and reducing reliance on foreign foundries [5][6]. Implications of Government Equity Stake - The government's equity stake in Intel represents a shift towards public-private partnerships, raising concerns about the impact on competition and innovation within the semiconductor industry [6][7]. - The involvement of the federal government in Intel's operations could lead to conflicts of interest, particularly in regulatory decisions affecting competitors and new entrants in the market [7][12]. Historical Context of Government Nationalization - The current situation is compared to historical instances of government nationalization during crises, but the Intel stake occurs in a non-crisis context, raising questions about the appropriateness of such actions [10][11]. - Previous nationalizations, such as those during World War I and the 2008 financial crisis, were justified by immediate needs, unlike the current Intel situation [10][11]. Concerns Over Market Distortion - The infusion of government capital into Intel may undermine the principles of free market competition, leading to a misallocation of resources and talent [7][13][14]. - Critics argue that government involvement distorts market dynamics, blurs ownership rights, and politicizes scientific advancements [7][13]. Call for Separation of Economy and State - There is a strong argument for reinforcing the separation between government and business to prevent further entanglement and ensure that companies operate based on merit rather than government favoritism [14][15][16]. - Ending direct subsidies and public-private partnerships is seen as essential to restoring competitive enterprise and protecting the integrity of the market [15][16].

Core Insights - Super Micro Computer, Inc. (SMCI) collaborates with Lambda to enhance AI infrastructure through the deployment of GPU-optimized servers, including NVIDIA Blackwell systems, aimed at delivering high-performance solutions to customers [1][2][3] Group 1: Collaboration and Technology - The partnership between Supermicro and Lambda focuses on developing powerful technology to advance AI infrastructure, utilizing a range of GPU-optimized servers to meet demanding AI workloads [2][3] - Lambda has selected various Supermicro systems, including models powered by Intel's Xeon Scalable processors, to meet the increasing demand for high-performance servers [2][3] Group 2: AI Factory Development - Lambda aims to build gigawatt-scale AI factories for training and inference, leveraging Supermicro's extensive server portfolio to fulfill current and future computational needs [3] - The collaboration has led to the establishment of a large AI factory equipped with energy-efficient servers and advanced cooling technology, facilitating rapid deployment of next-generation AI accelerators [3][6] Group 3: Regional Impact and Infrastructure - Columbus is emerging as a significant hub for AI innovation, supported by Cologix's interconnection services and Supermicro's trusted systems, enhancing low-latency access and scalability for enterprises in the region [4] - The combined efforts of Supermicro, Lambda, and Cologix are driving rapid AI development across various industries, including healthcare, finance, and manufacturing, by providing a streamlined path to production-ready AI solutions [4]

The government's stake in Intel is part of a broader strategy to create a sovereign wealth fund that could include more companies, White House economic advisor Kevin Hassett said Monday.In a deal that marked a further incursion of federal involvement with private companies, the White House on Friday announced that it was taking a 10% share of the chipmaking giant. The move is worth some $8.9 billion, some of which will come from grant funding associated with the CHIPS Act while the rest will be under separa ...

♪ >> GOOD MORNING, IT’S 5AM IN NEW YORK, I'M MATT MILLER IN FOR DANI BURGER WITH YOUR BLOOMBERG BRIEF. U.K. MARKETS ARE CLOSED FOR A BANK HOLIDAY, HERE'S WHAT YOU NEED TO KNOW. STOCKS PULLED BACK AFTER A RALLY FUELED BY FED CHAIR POWELL'S RATE CUT SIGNAL.INVESTORS NOW SHIFT TO FOCUS ON NVIDIA'S EARNINGS SET FOR LATER THIS WEEK AND DR PEPPER AGREES TO BUY COFFEE AND TEA MAKER PEET'S. FUTURES PULLING BACK, DOWN A LITTLE BIT. THE COURT OF PERCENT ON THE NASDAQ.MORE THAN 1% GAIN IN THE CASH TRADE FOR THE MAJOR ...

Federal Reserve Chair Jerome Powell sent his strongest signal yet on Friday that the central bank is likely to lower interest rates next month. In a closely watched speech in Jackson Hole, Wyoming, Powell cited sweeping changes in tax, trade, and immigration policies, noting that the shifting balance of risks may warrant adjusting the Fed's current policy stance. Stocks surged on Friday following those remarks.The Fed's next meeting is in midepptember. Joining us now, senior economics reporter for Axios, Co ...

Core Insights - Appaloosa's billionaire investor David Tepper has been actively purchasing AI hardware stocks while reducing positions in favored AI stocks like Meta Platforms [1][5][13] Group 1: AI Hardware Investments - Tepper's investment strategy in the second quarter focused on AI hardware, with significant purchases in Nvidia (1,450,000 shares, 483% increase), TSMC (755,000 shares, 280% increase), and Intel (8,000,000 shares, new position) [6][10] - Nvidia's GPUs, particularly the Hopper (H100) and Blackwell models, are crucial for enterprise data centers, while TSMC is expanding its chip-on-wafer-on-substrate capacity to meet demand for AI-GPUs [10] - Intel is viewed as a value-oriented buy, trading below book value and receiving $7.9 billion from the CHIPS Act for domestic chip fabrication plants, positioning it for future growth [11] Group 2: Selling Activity in Meta Platforms - Tepper's Appaloosa exited five positions and reduced 16 others, including a 27% reduction in Meta Platforms shares, which is a favored AI stock among many fund managers [13][14] - The rationale for selling Meta may include locking in gains from a significant stock price increase from under $100 to over $600 per share between late 2022 and the second quarter of 2025 [15] - Despite concerns about the cyclical nature of advertising revenue, Meta's strong user base (3.48 billion daily users) and successful integration of AI solutions into its ad platform may enhance its pricing power [17][18][19]

JOUMANNA: GOOD MORNING, THIS IS HORIZONS MIDDLE EAST & AFRICA. ASIAN STOCKS AFTER JAY POWELL SIGNALS AN INTEREST RATE CUT COULD COME AS SOON AS NEXT MONTH, DESPITE DIVISIONS OVER CHALLENGES IN INFLATION IN THE JOBS MARKET. THE U.S. GOVERNMENT TAKES A 10% STAKE WORTH $8.9% BILLION IN A BID TO REINTEGRATE INTEL AND BOOST DOMESTIC CHIPMAKING.EARNINGS AHEAD, IN THE SPOTLIGHT AS WE LOOK AT SOME COMPANIES RELEASING RESULTS THIS WEEK. I AM BACK IN DUBAI AFTER TWO WEEKS OFF. WE HAVE A LOT TO TALK ABOUT TODAY ESPECI ...