SoftBank makes Intel investment as Nvidia preps new chip
President Trump’s impact on industries and stocks has been a hot topic, with recent developments shaking up the market. Let’s dive into the latest updates and predictions from The Fly’s daily recap.
INTEL STAKE: The Trump administration is reportedly in talks to acquire a 10% stake in Intel by converting grants from the Chips and Science Act into equity. This move could make the U.S. government Intel’s largest shareholder. Additionally, SoftBank has announced a $2B investment in Intel common stock, emphasizing their commitment to semiconductor innovation in the U.S.
Bernstein analysts have raised concerns about Intel potentially giving up $10.9B in CHIPS Act funding for a 10% stake. They believe that Intel needs customers, and funding a build-out without a customer base could pose risks for shareholders.
NVIDIA CHIP: Nvidia is working on a new AI chip for China, based on its Blackwell architecture. While President Trump has hinted at allowing more advanced Nvidia chips to be sold in China, regulatory approval is uncertain due to national security concerns.
WINDMILLS ‘KILLING’ NEW JERSEY: President Trump’s recent comments on windmills have stirred controversy. Despite his claims, clean tech stocks like AES Corp., NextEra Energy, GE Vernova, and others continue to thrive in the renewable energy sector.
‘GOOD MEETING’: President Trump’s meeting with world leaders, including President Zelenskyy of Ukraine and President Macron of France, focused on security guarantees for Ukraine. The potential for peace in the region is promising, with plans for a trilateral meeting involving President Putin, President Zelenskyy, and President Trump in the works.
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