Markets
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Luke Kawa

Nvidia slumps despite reassuring AI demand news from around the world

Nvidia’s business outlook is seemingly getting a boost from companies all over the world — but the stock is still retreating.

The chip designer bounced back from the worst one-day destruction of market value of a single company on Monday with a big gain on Tuesday, but is now down 2% in the premarket.

The dip comes after Dutch semi supplier ASML said its bookings were more than twice what Wall Street anticipated in the fourth quarter, and Japanese-based chip-testing equipment maker Advantest significantly upgraded its earnings outlook through March 2025. Nvidia has referred to Advantest’s US unit as one of its “industry leading suppliers.”

And DeepSeek AI isn’t the only Chinese entity to undercut the case for spending billions on Nvidia’s chips this week: Alibaba is also boasting of a best-in-class AI model.

Advantest CEO Douglas Lefever provided an indication that the AI boom may begin to lift more boats for broader semiconductor demand thanks to AI-enabled hardware (or its “edge” business), though perhaps not imminently. From the earnings call transcript (this appears to have been translated from Japanese, so it’s a little clunky):

“As far as edge, we have seen some goodness in edge compute when it comes to some of the consumer electronics in the handsets. A lot of the handsets now are equipped with a lot of AI compute capabilities and so that is leading to some business upside. But it’s clear that most of our business is going into more infrastructure level AI.”

If chipmakers are so eager to test chips and have more of the highest-power design systems, they must be pretty bullish about how much demand there’s going to be from the so-called hyperscalers, among others. But this optimism could be misplaced: reassurance from companies that are upstream from Nvidia is much less a vote of confidence than support from its downstream customers.

Thankfully, we’ve got Meta and Microsoft reporting after the close on Wednesday, which should shed some more light on this matter.

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Chicago Bulls player Michael Jordan is surrounded by NBA Championship trophies after his team defeated the Utah Jazz 90-86 to win the 1997 NBA Finals at the United Center in Chicago, IL.

Stock climb on US-Iran peace deal; semiconductors rally

This morning, President Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding aimed at ending the war.

Tasha Matsumoto19h
Luke Kawa
6/18/26
Accenture poised for record one-day decline after Q3 new bookings and Q4 revenue guidance disappoint

Accenture isn’t cashing in too much from the AI revolution.

Accenture CEO Highlights AI's Role in Future Business at CES 2
markets
Helena Cheng

Intel surges after Trump announces US chip deal with Apple

Intel is soaring in early trading after President Donald Trump posted on Truth Social that Apple has agreed to work with the semiconductor giant to design and manufacture its chips domestically.

President Trump positioned the agreement as the latest victory for his administration’s industrial policy after the federal government acquired a 9.9% equity stake in Intel last year.

"Stupid Presidents took our Economy for granted, and let Taiwan and others steal our Semiconductor Factories," Trump wrote in the post. "We design everything, but we need to BUILD it here, NOW! So I decided to help Intel because we need to design and build our Chips right here in America... and, finally, Apple has agreed to work with Intel to design and build its Chips in America."

Intel reportedly reached a preliminary agreement back in May to manufacture chips for the Apple, which has been facing supply constraints for its iPhone as well other products. The deal could help Apple reduce its reliance on longtime partner TSMC by bringing more of its chip manufacturing stateside.

"This partnership helps Apple with chip development and manufacturing on US soil with greater focus on reducing dependence on Asian manufacturing facilities." Wedbush's Dan Ives commented in a company report. He has a $400 price target for Apple this year.

The timing aligns with Intel's technical roadmap. Earlier this week, Intel confirmed that its advanced, performance-boosted 18A-P process node officially entered its risk production phase. This move serves as a blueprint for both Intel chips and processors the company plans to build for foundry customers.

“The current capacity crunch is probably emboldening customers to give Intel a harder look at this stage than perhaps they might ordinarily be inclined to do as the prospect of more advanced capacity will take on higher value in a constrained environment,” wrote Bernstein analyst Stacy Rasgon. “We are sure that Trump’s encouragement is at least not going to hurt though.”

Momentum was built around Intel Foundry services as surging global AI demand continuously outpaced capacity. Earlier this month, Google reportedly placed an order with Intel to manufacture more than 3 million of its increasingly popular tensor processing unit chips in 2028. According to the report, Nvidia is also testing to see if Intel could manufacture its next-gen Feynman chips.

markets
J. Edward Moreno

Stocks rise after US, Iran sign peace plan

Stocks rose Thursday morning after President Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding aimed at ending the war, in another sign that a months-long war that caused energy prices to spike could be coming to an end.

Trump signed the MOU before a dinner in Versailles, France on Wednesday evening. The president previously announced that a deal had been reached on Sunday evening, saying that traffic through the Strait of Hormuz would resume and that the US naval blockade would be lifted.

The deal comes after both sides exchanged attacks last week, escalating tensions to some of the highest levels since the US and Israel struck Iran in late February.

The price of Brent Crude ticked even lower after dropping on Sunday, sitting at about $76 a barrel. Oil giants like Shell, Chevron and Exxon fell on the news, as average gas prices in the US dropped below $4 for the first time in months.

Futures for the S&P 500 and Nasdaq Composite rose 0.9% and 1.5%, respectively. Last week, inflation readings for May showed both wholesale inflation and consumer prices rose in large part because of higher energy costs.

Signs of the peace deal have also lead to buying of momentum stocks this week. iShares MSCI USA Momentum Factor ETFrose another 1.46% in premarket trading.

Tasha Matsumoto
6/17/26
Stocks fall after new Fed Chair Warsh’s first policy meeting as traders worry about a rate hike

While the Fed left rates unchanged (as expected) a hawkish dot plot has traders bracing themselves for a rate hike this year.

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