Intel's (NASDAQ:INTC) deal with Nvidia (NASDAQ:NVDA) to co-develop PC and data center chips could have major implications for Astera Labs (NASDAQ:ALAB), but it's unclear exactly what they are at this point, Morgan Stanley said. “While Intel was not listed on the ...

Market Overview - Stock indexes reached new record highs following a quarter-point interest rate reduction by the Fed and Nvidia's investment announcement in Intel [2][3] - The S&P 500 index increased by 0.5%, the Nasdaq Composite rose by 0.9%, and the Dow Jones Industrial Average saw a 0.3% rise [3] Federal Reserve Actions - The Fed projected two additional rate cuts for the year, potentially lowering the year-end federal funds rate to a range of 3.5% to 4% [3] Nvidia and Intel Collaboration - Nvidia announced a $5 billion investment in Intel, pending regulatory approval, which is seen as a positive signal for innovation in AI and data center chips [4][5] - The collaboration will focus on PC and data center chips, with Intel providing central processors and advanced packaging for jointly designed products [5] Competitive Landscape - The partnership poses risks for competing U.S. chip companies such as AMD and Broadcom, as well as Taiwan Semiconductor, which manufactures Nvidia chips [5]

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 61.6, remaining in the "Greed" zone, up from 58.5 [6] - U.S. stocks closed higher, with the Nasdaq Composite gaining over 200 points following a 25 basis points rate cut by the Federal Reserve [1] Sector Performance - Most sectors in the S&P 500 ended positively, with information technology, industrials, and communication services showing the largest gains [4] - Consumer staples and consumer discretionary sectors closed lower, diverging from the overall market trend [4] Company Highlights - Intel Corp. surged 23% after Nvidia Corp. announced a $5 billion investment for co-developing PC and data center chips [1] - CrowdStrike Holdings Inc. rose approximately 13% after announcing long-term AI initiatives and projecting annual recurring revenue growth above 20% by fiscal 2027 [2] Economic Indicators - U.S. initial jobless claims fell by 33,000 to 231,000, better than market expectations of 240,000 [3] - The Philadelphia Fed Manufacturing Index increased to +23.2 in September, the highest since January, compared to -0.3 in August [3] Upcoming Earnings - Investors are anticipating earnings results from MoneyHero Ltd and Globus Maritime Ltd [5]

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 61.6, remaining in the "Greed" zone, up from 58.5 [6] - U.S. stocks closed higher, with the Nasdaq Composite gaining over 200 points following a 25 basis points rate cut by the Federal Reserve [1] Sector Performance - Most sectors in the S&P 500 ended positively, with information technology, industrials, and communication services showing the largest gains [4] - Consumer staples and consumer discretionary sectors closed lower, contrasting with the overall market trend [4] Company Highlights - Intel Corp. surged 23% after Nvidia Corp. announced a $5 billion investment for co-developing PC and data center chips [1] - CrowdStrike Holdings Inc. rose approximately 13% after announcing long-term AI initiatives and projecting annual recurring revenue growth above 20% by fiscal 2027 [2] Economic Indicators - U.S. initial jobless claims fell by 33,000 to 231,000, better than market expectations of 240,000 [3] - The Philadelphia Fed Manufacturing Index increased to +23.2 in September, the highest since January, compared to -0.3 in August [3] Upcoming Earnings - Investors are anticipating earnings results from MoneyHero Ltd and Globus Maritime Ltd [5]

Group 1: Nvidia and Intel Partnership - Nvidia announced a partnership with Intel to co-develop PC and data center chips, positively impacting Intel's stock performance [1] - Intel's stock is experiencing its best day on record following the announcement, while Nvidia ended a three-session losing streak [1] Group 2: AMD Performance - AMD's stock is down 1.4% to $156.98, continuing a three-day losing streak and cooling off from its August 52-week highs [2] - A potential rebound for AMD could occur if its 80-day moving average provides support [2] Group 3: Options Trading Sentiment for AMD - Options traders have shown bullish sentiment towards AMD, with a 10-day call/put volume ratio of 2.51, placing it in the 86th percentile of the past year [3] Group 4: Micron Performance - Micron's stock is up 5.8% at $169.33, driven by a bullish note and anticipation ahead of next week's earnings report [4] - Micron is on track for a 12-day winning streak, having reached a record high of $170.45 earlier today, and has surged 101% in 2025 [4] Group 5: Options Trading Sentiment for Micron - Micron is experiencing increased bullish activity in options trading, with 249,000 calls exchanged compared to 189,000 puts, which is double the expected volume [5] - The September 170 call is the most active contract, with new positions being opened [5]

Core Viewpoint - Nvidia is investing $5 billion in Intel, becoming one of its largest shareholders with approximately 4% ownership, which marks a significant support for Intel amid its ongoing turnaround efforts [1][2][5]. Investment Details - Nvidia will pay $23.28 per share for Intel common stock, which is slightly below Intel's recent closing price of $24.90 but higher than the $20.47 price paid by the US government [6]. - The investment follows a $2 billion investment from Softbank and a $5.7 billion investment from the US government, contributing to Intel's growing capital reserves [10]. Strategic Collaboration - The agreement includes plans for Nvidia and Intel to jointly develop PC and data center chips, although it will not involve Intel's foundry business [5]. - Intel will design custom data center central processors that Nvidia plans to package with its AI chips, enhancing communication speeds between the two companies' chips [17]. - The collaboration aims to produce multiple generations of future products without a licensing component [7]. Market Impact - Following the announcement, Intel's shares rose approximately 26%, while AMD shares fell by 4.6%, indicating a potential competitive challenge for AMD and Broadcom [13][20]. - The partnership could provide Intel with a competitive edge in the consumer market by allowing it to package custom graphics chips with its PC central processors [21]. Political Context - Nvidia's investment aligns with US policy and may help ease restrictions on selling advanced chips to China, despite not directly addressing Nvidia's challenges in that market [9][15].

Group 1 - Intel Corp's stock has increased by 26.4%, trading at $31.46, following Nvidia's announcement of a $5 billion investment to collaborate on chip development [1] - Intel is experiencing its largest single-day percentage gain on record and has achieved a 55.8% year-over-year increase, reaching a 52-week peak of $31.79 [1] - The stock bounced off a support level at $24 established in late August [1] Group 2 - Options trading activity is significantly high, with 1.06 million calls and 352,000 puts exchanged, which is six times the typical volume [2] - The September 30 call is the most popular contract, while new positions are being opened at the 30 put [2] - Intel's Schaeffer's put/call open interest ratio (SOIR) is in the 80th percentile, indicating a more bearish sentiment among short-term options traders [2] Group 3 - The current environment is favorable for options trading, as indicated by Intel's Schaeffer's Volatility Index (SVI) of 43%, which is in the 8th percentile of annual readings, suggesting low volatility expectations [3]

Market Overview - The U.S. stock market is expected to open strongly on September 18, 2025, following the Federal Reserve's first interest rate cut of the year and projections for further easing [1][4] - Major U.S. stock index futures are showing substantial gains, with Dow Jones futures up approximately 0.69%, S&P 500 futures up around 0.86%, and Nasdaq 100 futures leading with a gain of about 1.05% [2] Current Index Performance - The Dow Jones Industrial Average rose by 0.57% in the previous session, achieving a new all-time high on an intraday basis, while the S&P 500 edged down 0.1% and the Nasdaq Composite fell 0.33% [3] - The S&P 500 has already risen to 6658 points, gaining 0.87% from the previous session and reaching an all-time high [3] Economic Data and Fed Actions - The Federal Reserve cut its benchmark interest rate by 25 basis points to a target range of 4.00% to 4.25%, with projections indicating the possibility of two additional quarter-point rate reductions before the end of 2025 [4][5] - Initial jobless claims dropped more than expected, and the Philadelphia Fed Manufacturing Index jumped in September, surpassing consensus forecasts [6] Corporate Developments - Nvidia announced a $5 billion investment in Intel to co-develop PC and data center chips, resulting in a 30% surge in Intel shares during premarket trading [7] - Major U.S. banks, including JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America, lowered their prime lending rates from 7.50% to 7.25% following the Fed's rate cut, which is expected to stimulate borrowing [8] Upcoming Earnings and Corporate News - Darden Restaurants and FactSet Research Systems reported quarterly earnings, with Darden missing estimates and FactSet beating revenue expectations [12] - Other notable corporate announcements include Huawei's unveiling of advanced AI infrastructure, Hyundai's 2030 vision for electrified vehicles, and Mars's €1 billion investment in EU operations [12]

Core Viewpoint - Nvidia has agreed to invest $5 billion in Intel, focusing on the development of PC and data center chips, but not on manufacturing Nvidia chips [1][4]. Company Analysis - The partnership does not include Intel's foundry manufacturing Nvidia's AI chips, which some investors may have hoped for [3][4]. - Intel aims to leverage its x86 CPU technologies to connect with Nvidia's AI technologies, indicating a collaboration rather than a manufacturing agreement [4]. - The $5 billion investment is seen as insufficient for Intel's needs, as the company requires tens of billions to enhance its foundry capabilities [5][6]. Industry Context - The investment comes amid a broader context of the Chips Act, which emphasizes the need for domestic foundries and supply chain security [6]. - Intel's core business in data center and PC chips has significantly eroded, particularly with the rise of AI-driven investments [7]. - The market reaction to the partnership has been mixed, with Intel's stock showing some movement but not reflecting a substantial recovery [10].

By Stephen Nellis, Max A. Cherney, Jeffrey Dastin and Karen Freifeld SAN FRANCISCO/WASHINGTON (Reuters) - Nvidia said on Thursday it would invest $5 billion in Intel, throwing its heft behind the struggling U.S. chipmaker just weeks after the White House engineered an extraordinary deal for the federal government to take a massive stake in the company. Nvidia's support offers Intel a new chance after years of turnaround efforts failed to pay off, and triggered a 23% jump in the U.S. chip manufacturer's s ...