On this edition of Stock Movers:
- Intel (INTC) shares soared after Nvidia agreed to invest $5 billion in the chipmaker and said the two will co-develop chips for PCs and data centers, a surprise move to help prop up an ailing archrival that sent Intel shares soaring. Nvidia will buy Intel common stock at $23.28 per share, the two companies said on Thursday. Intel will use Nvidia’s graphics technology in upcoming personal computer chips and also provide its processors for data center products built around Nvidia hardware. Intel and Nvidia billed their agreement as a product hook-up that gives them the opportunity to move into areas of the computer market they don’t currently reach, an overall opportunity that may be worth as much as $50 billion a year, according to Nvidia’s Chief Executive Officer Jensen Huang. Investors saw the announcement as a shot in the arm for Intel as the company struggles to stem losses and catch competitors, like Nvidia, that it once dwarfed.
- Olive Garden owner Darden Restaurants (DRI) shares slumped after 1Q comparable sales for the company’s core restaurant brands showed greater-than-expected deceleration from the previous quarter. Profits also trailed Street expectations for the quarter, hurt in part by food inflation, while slight boost to annual top-line forecasts fail to flow to the bottom line, which was maintained.
- Shares of Cracker Barrel Old Country Store Inc. (CBRL) slumped after its sales guidance missed expectations, showing the brand is still dealing with the fallout from its controversial and short-lived logo change. Revenue in fiscal 2026, which will run through next July, is projected to be in a range of $3.35 billion to $3.45 billion, the company said in a statement Wednesday. Analysts were expecting sales of $3.52 billion in the period, according to the average of estimates compiled by Bloomberg. The mid-point of Cracker Barrel’s range suggests sales will remain similar to the past two years, when growth has stagnated. The outlook assumes foot traffic at existing stores declines 4% to 7% in the coming year, the company said.
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