This week brings excitement as Intel's shares soar 23% after Nvidia announces a $5 billion investment and joint chip development. Oracle's stock jumps due to talks with Meta about a potential $20 billion cloud deal for AI capabilities. Meanwhile, Darden Restaurants faces challenges, with disappointing results leading to analyst cuts and changes at Olive Garden. Tune in for insights on these key market movements!
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Nvidia-Intel Deal Reframes Rivalry
Nvidia's $5 billion investment in Intel signals pragmatic collaboration between fierce rivals to expand market reach.
The deal pairs Nvidia graphics with Intel CPUs to target both PCs and data centers and lifted Intel shares over 20% in a week.
insights INSIGHT
Deal Shows Nvidia's Market Influence
The Nvidia-Intel tie-up reflects Nvidia's industry power and its capacity to shape competitors' strategies.
Tim Stenovec warns the arrangement is savvy for Nvidia and raises questions about timing relative to U.S. government stakes in Intel.
insights INSIGHT
Oracle Eyes Big Cloud Win With Meta
Oracle is in talks to provide Meta with roughly $20 billion of cloud compute for AI model training and deployment.
The potential deal would cement Oracle's role as a major infrastructure provider and follow a surge in bookings that pushed its stock to all-time highs.
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On this episode of Stock Movers, we look at some of the biggest gainers and decliners of the week, including:
- Intel (INTC) shares rallied this week on news Nvidia agreed to invest $5 billion in the chipmaker and said the 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 shares surged 23% at the close in New York on Thursday, the biggest single-day jump since October 1987. Nvidia stock gained 3.5% and has increased 31% this year.
- Oracle (ORCL) shares surged in trading on Friday on reports it's in in discussions with Meta Platforms Inc. for a cloud computing deal worth about $20 billion, providing further evidence that the company has become a significant infrastructure provider. Under the multiyear deal, Oracle would provide the social media giant with computing power for training and deploying artificial intelligence models, according to people familiar with the talks. The total commitment amount may increase and other deal terms could still change before a final agreement, said the people, who asked not to be named because the discussions were private.
- Darden Restaurants (DRI) shares slipped after several analysts reduced their price targets following the restaurant company's disappointing results on Thursday. 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.
Stock Movers