Know Your Risk Podcast The Nvidia/Intel Deal
12 snips
Sep 18, 2025 Zach and Chase dive into the intriguing Nvidia-Intel deal, exploring why Nvidia's stock surge seems disconnected from fundamentals. They discuss the implications of China's chip restrictions and how Intel stands to gain the most from this partnership. The hosts also analyze labor data, noting a spike in fraudulent jobless claims and its market implications, while addressing investor psychology and liquidity trends affecting small caps. A fascinating look at the intersection of tech deals and market behavior awaits!
AI Snips
Chapters
Transcript
Episode notes
Mechanics Can Trump Fundamentals
- The market often ignores fundamentals and prices in mechanics or euphoria instead.
- Zach Abraham argues Nvidia's rally after an Intel stake shows mechanics can overwhelm bad fundamentals.
Tiny Deal, Huge Valuation Reaction
- Nvidia's stock jumped massively after announcing a small stake in Intel, creating outsized market cap moves.
- Zach Abraham highlights this as an example of irrational valuation responses to minor corporate actions.
Market Ignores China Demand Risk
- Two recent headlines for Nvidia were arguably bearish: Chinese demand loss and the Intel partnership.
- Zach Abraham sees the market ignoring those negatives while inflating the stock.