The companies will focus on seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink — integrating the strengths of NVIDIA's AI and accelerated computing with Intel's leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers. For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market. For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.
00:00Now, let's talk a little bit about Intel because that's some of the big news here today.
00:05Intel trading up by 29% here this morning.
00:08Tell you what, this has actually been a great trade.
00:13We've talked about this quite a bit.
00:14We've actually traded this a few times in here.
00:16This has really been sideways since August of 2024.
00:20It's really used this $18 to $19 level as an extremely strong support.
00:26Today, on the back of this news, we're actually gapping above the 500-day moving average.
00:32We fill the gap that we had going all the way back to August 1st to 2nd.
00:37And actually, we're at the high end of the consolidation range that we were in before we broke away from this.
00:42So a lot of work technically being done here by the move on Intel.
00:46Intel shares are trading higher after the company announced it will jointly develop AI infrastructure and personal computing products with NVIDIA,
00:55which will invest $5 billion in Intel stock at $23.28 per share.
01:01Now, the first question that I have here for the group, we're trading up 30% today.
01:06The news is no doubt good for Intel.
01:09But are you really moved by the $5 billion?
01:13For me, it seems like this really isn't all that much.
01:17I feel like all of the AI spending and all of the CapEx spending is extremely high.
01:23$5 billion is a lot of money, but is it really enough?
01:26That would be the only follow-up question I have.
01:28I don't know if I have the answer for that yet, but that's one of the things we're looking at.
01:32Now, because this broke really early this morning, we actually don't have a story.
01:37That's all polished up with all of the important things.
01:40So I'm going to review the PR here with you instead.
01:43Intel today announced a collaboration to jointly develop multiple generations of custom data center and PC products
01:50that accelerate applications and workloads across hyperscale enterprise and consumer markets.
01:55The company will focus on seamlessly connecting NVIDIA and Intel architectures using NVIDIA's NVLink,
02:02integrating the strength of NVIDIA's AI and accelerated computing with Intel's leading CPU technologies
02:07and x86 ecosystem to deliver cutting-edge solutions for customers.
02:11For data centers, Intel will build NVIDIA's custom x86 CPUs that NVIDIA will integrate
02:18into AI infrastructure platforms to offer to the market.
02:22For personal computing, Intel will build and offer to the market x86 systems on chips
02:29that integrate NVIDIA RTX GPU chipsets.
02:33These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPU and GPUs.
02:42NVIDIA will invest $5 billion in Intel's common stock at a purchase price of $23.28 per share.
02:48The investment is subject to customary closing conditions, including regulatory approval.
02:54Quote here, quote,
02:55quote, AI is powering a new industrial revolution and reinventing every layer of the computing stack
03:03from silicon to systems to software.
03:06At the heart of this reinvention is NVIDIA's CUDA architecture, end quote.
03:10That came from NVIDIA founder and CEO Jensen Huang.
03:14It goes on to say,
03:14This historic collaboration tightly couples NVIDIA's AI and accelerated computing stack with Intel's CPU
03:21and the vast x86 ecosystem, a fusion of two world-class platforms.
03:27Together, we will expand our ecosystem and lay the foundation for the next area of computing.
03:32Quote,
03:33Intel's x86 architecture has been a foundation,
03:36has been foundational, excuse me, to modern computing for decades.
03:40And we are innovating across our portfolio to enable the workloads of the future.
03:45That came from CEO Lip Boutan.
03:47He goes on to say,
03:48Intel's leading data center and client computing platforms,
03:52combined with our process technology,
03:54manufacturing and advanced packaging capabilities,
03:57will complement NVIDIA's AI and accelerated computing leadership
04:00to enable new breakthroughs for the industry.
04:03We appreciate the confidence Jensen and the NVIDIA team have placed in us
04:08with their investment and look forward to the work ahead
04:11as we innovate for customers and grow the business.
04:15Now,
04:15so if you're in Intel,
04:18this is a really good day,
04:20up 30% over some moving average.
04:22We already talked about the technical area that we're taking out.
04:24So perhaps,
04:25depending on what your trade plan was,
04:27today is the day to ring that register.
04:28But the question that I have for you is,
04:31is there more upside given this piece of news?
04:34Is Intel suitable for a good investment entry right now,
04:38or maybe even a swing trade from some of these levels?
04:41Just kind of looking at the chart here,
04:43being greedy,
04:44if you will,
04:45I'd love for Intel trade back down a little bit as people take profit after this piece of news
04:49and maybe hold that 500.
04:51I would just feel a little bit more confident about hanging on to Intel.
04:56If we were able to add that at a support level versus just kind of chasing a PR here.
05:00So do it just love to know from the group here,
05:03what you guys think about Intel and whether or not this makes a good trade.
05:07Here we go.
05:08It looks like Jared is not impressed at all.
05:10Blah,
05:10blah,
05:11blah,
05:11Intel.
05:11Okay,
05:12Jared.
05:12So I'm guessing you don't like Intel and you will not be trading this.
05:16We know if anyone else has anything here on Intel,
05:20Ed saying,
05:20glad I didn't buy puts in Intel.
05:22Me too.
05:24Me too.
05:24Ed.
05:25Glad to hear that you're not losing money on that.
05:27Perry says 5 billion is not the point.
05:30NVIDIA and Intel together for domestic AI is huge money.
05:34This is a,
05:34this is a good point here.
05:35And this is Perry.
05:36You're really kind of hitting at the core of why I'm asking if this is a good place to maybe enter Intel for a longer term swing.
05:44Sounds to me like you see the other side of that.
05:47It seems to me like you think this is going to be huge for the company and represents an opportunity.
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