Episode summary
Nvidia Makes $5 Billion Investment into Intel | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Alexis Christoforous · Guests: Mandeep Singh, Gene Seroka, Michael Halen
Summary
The biggest market story was Nvidia’s decision to invest $5 billion in Intel through a straight common-stock purchase, following the earlier U.S. government stake in Intel. The move sent Intel shares up about 26% to a new 52-week high, and Bloomberg Intelligence’s Mandeep Singh said the surprise was not an Intel investment itself, but that Nvidia chose a rival rather than a hyperscaler. He framed the tie-up as a chip co-design effort for PCs and data centers, not a foundry deal, and argued it reflects the shift in power from Intel to Nvidia in AI.
The supply-chain segment focused on tariffs and cargo flows at the Port of Los Angeles. Gene Seroka said July and August were the busiest two months in the port’s 117-year history as importers rushed inventory ahead of policy changes, while August trade volumes were near record levels and may fall 10% this month. He said tariff collection happens at the port, and estimated a new fee on Chinese-linked vessels could add about $125 to over $300 per container starting October 14.
Michael Halen said Darden Restaurants posted strong sales but margins were pressured by beef costs and delivery expenses, while Cracker Barrel’s quarter was solid but still overshadowed by the logo controversy. He argued restaurant demand is holding up better than consumer pessimism suggests, but inflation is becoming the bigger margin problem.
Key takeaways
- Mandeep Singh said Nvidia’s $5 billion Intel investment is more about strategic co-design than foundry exposure, and could support a PC and data-center refresh cycle.
- Singh said the deal could pressure AMD if Nvidia and Intel eventually launch a product that wins share in PCs or laptops.
- Gene Seroka said July and August were the busiest two months in Port of Los Angeles history, as importers pulled inventory forward ahead of tariffs.
- Seroka said the upcoming Chinese-vessel penalty could run about $125 to over $300 per container and likely gets passed to importers.
- Michael Halen said Darden’s sales were strong but margins were squeezed by beef inflation and delivery costs, even as traffic remained healthy.
- Halen said Cracker Barrel’s underlying quarter looked solid, but the logo controversy has slowed sales trends since August 19.
Notable quotes
“Nvidia uh deciding to buy or invest $5 billion into in uh Intel uh Visav a stock purchase a straight out purchase a common stock there”
“an investment from Nvidia, that was the last thing uh that I anticipated”
“July and August combined are busiest two months in the 117-year history of the port”
“the new penalty fee goes into place on October 14th and it'll be phased up but right now we are estimating that it could be anywhere from about $125 to over $300 per container”
“the margins, you know, this is this company has best-in-class margins. They've always protected their margins”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Certainly the news of the day from a company perspective uh is Intel uh we saw early this morning we saw a pretty cool story.
Nvidia uh deciding to buy or invest $5 billion into in uh Intel uh Visav a stock purchase a straight out purchase a common stock there and that's alongside the earlier investment by the US government of a 10% stake uh in uh Intel and the stock reacting favorably here today. Shares of Intel up about 26% today. That sets a new 52- week high.
Stocks up 57% year-to- date. This stock was really hurting as recently as 6 months ago, but boy, it's gotten a couple big shots in the arm as it relates to their AI outlook. Let's check in with Mandep Singh.
He's a senior tech analyst for Bloomberg Intelligence. Mandy, we don't How much How surprised were you in and Silicon Valley when we woke up this morning and saw that a competitor was going to take a make a $5 billion investment?
Yeah, I was expecting something to happen in terms of an investment in Intel after the administration took a 10% stake, but uh an investment from Nvidia, that was the last thing uh that I anticipated. So I was more in the camp that one of the hyperscalers whether it's and Amazon did have a partnership with Intel. It was announced back in 2024.
Uh so I thought it would be one of the hyperscalers that would make an investment. So uh clearly the surprise element was the fact that the partnership or the investment wasn't for foundry but it was more chip co-design and look that's where uh Nvidia has taken share from Intel over the past 2 years is uh Intel was a dominant force in data centers uh with their x86 architecture.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- nvidia intel investment
- semiconductor capex
- us supply chain shipping
- tariffs trade war
- restaurant earnings
Companies and tickers mentioned
- NVDA
- INTC
- CBRL
- DRI
- Nvidia
- Intel
- Cracker Barrel Old Country Store
- Darden Restaurants
Watch the episode
Watch “Nvidia Makes $5 Billion Investment into Intel | Bloomberg Intelligence” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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