Nokia Skyrockets on Nvidia Deal, D.R. Horton Falls

- Nokia (NOK) shares skyrocketed on the news Nvidia plans to make a $1 billion equity investment in the company, as the AI sector's kingmakers bets on the Finnish company's pivot from mobile networking kit into artificial intelligence. Nokia shares jumped the most in more than a decade. Nokia will issue about 166 million shares to Nvidia at $6.01 apiece, giving Nvidia a 2.9% stake, the companies said in a statement on Tuesday. Nvidia’s chips will be used to accelerate Nokia’s software for 5G and 6G networks and Nvidia will explore ways to use Nokia’s data center technology in its AI infrastructure, they said.
- Beyond the Nokia news, Nvidia (NVDA) also saw shares rise. On Tuesday, as part of its GTC conference held in Washington, DC, Nvidia unveiled a new technology platform — Nvidia Drive AGX Hyperion 10 — that lets manufacturers equip their cars with hardware and sensors that can work with compatible autonomous-driving software.
- D.R. Horton (DHI) shares fell as much as 7.5% Tuesday, the biggest decline in almost a year, after reporting weaker-than-expected quarterly margins as the homebuilder leaned heavily on incentives to drive sales. The company reported a home sales gross margin of 20%, down from 23.6% a year earlier and below consensus of 21.3%, based on a Bloomberg survey of analysts. D.R. Horton’s shares moderated slightly and were down 2.2% to $155.32 at 10:01 a.m. in New York Tuesday.

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