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- 📈 Inside Intel’s Shake-Up
📈 Inside Intel’s Shake-Up
Super Micro pops nearly 30%, DE Judge blocks Elon's $56B Tesla pay, GM selling battery cell plant for $1B, Stoli vodka files for bankruptcy, Intel’s CEO Exits
Evelio Silvera
December 03, 2024
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Good morning.
⚡ The Fast Five → Super Micro pops nearly 30%, DE Judge blocks Elon's $56B Tesla pay, GM selling battery cell plant for $1B, Stoli vodka files for bankruptcy, Intel’s CEO Exits
🔎 Market Trends → S&P, Nasdaq hit fresh highs, boosted by tech-related shares; Futures bide time with focus on more data, Fed commentary
And now…
⏱️ Your 5-minute briefing for Tuesday, December 3, 2024:
MARKET BRIEF
Before the Open
As of market close 12/2/2024.
Pre-Market
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Fear & Greed
Markets in Review
Nasdaq Hits New Heights as Tech Leads the Day
The Nasdaq surged 1% to 19,404, and the S&P 500 rose 0.2% to 6,047.2, both marking record closes. The Dow, however, dipped 0.3% to 44,782, with utilities weighing on the index.
The Big Picture:
Investors celebrated a bullish start to December as better-than-expected manufacturing data and dovish Fed commentary fueled optimism. Fed Governor Christopher Waller's hint at a possible rate cut added momentum to tech-heavy indices.
Communication services and technology stocks shined, benefiting from economic resilience and steady consumer spending. Black Friday sales, up to $10.8 billion, supported a broader narrative of robust demand despite higher rates.
Meanwhile, WTI crude climbed 0.3% to $68.19 per barrel, signaling cautious optimism about energy demand, while gold dipped 0.8% to $2,661 per ounce, reflecting fading risk-off sentiment.
Market Movers:
Super Micro Computer (SMCI): Skyrocketed 28.7%, topping the S&P 500 after an internal review cleared governance concerns and boosted investor confidence in its AI server business. With AI at the forefront, SMCI’s reaffirmed leadership signals a long runway for growth.
Stellantis (STLAM): Dropped 6.3% after CEO Carlos Tavares’s unexpected resignation. The leadership void raises questions about its EV strategy and long-term execution.
Intel (INTC): Slipped 0.5% as CEO Pat Gelsinger announced his retirement. While leadership changes create uncertainty, Intel’s restructuring efforts are seen as a necessary evolution.
What They’re Saying:
“The odds of a December rate cut are now 75%, up from 66% just days ago, reflecting a shifting macro landscape,” noted CME FedWatch analysts. “Investors are betting that the Fed will ease just enough to keep the economy humming without stoking inflation.”
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Job Openings and Labor Turnover Survey - 10:00am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
Earnings Reports
Today: Salesforce, Box, Couchbase, Okta
Tomorrow: Royal Bank of Canada, Synopsis, Hormel, Campbells, Chewy, Dollar Tree
MARKET BRIEF
Leading News
Intel CEO Gelsinger forced out as chip giant falls behind Nvidia, TSMC
Why it matters:
Intel’s (INTC) CEO shake-up could signal fresh opportunities in its turnaround story—or amplify the pressure on its ambitious recovery plan.
Zoom Out:
Intel's legendary CEO Pat Gelsinger has stepped down after a turbulent tenure. His “five nodes in four years” mission to leapfrog competitors in manufacturing still hangs in the balance, and the stakes couldn’t be higher for one of America’s most iconic tech firms.
Despite losing 61% of its market value during Gelsinger’s leadership, investors responded with cautious optimism: shares jumped 5% on the announcement before closing slightly lower. The key question now—can Intel’s next leader steer the ship back on course?
The interim co-CEOs face two battles: executing Intel’s critical 18A process technology and regaining market share lost to Advanced Micro Devices (AMD) and Nvidia (NVDA). Add to that Intel's struggle to turn its foundry division into a moneymaker, with losses exceeding $11 billion this year.
Deep Dive:
Manufacturing at a Crossroads: The 18A node, set to launch in mid-2025, represents Intel’s chance to reclaim the manufacturing crown from Taiwan Semiconductor (TSM). Missing this target would be a massive credibility blow.
Foundry Headwinds: Intel’s pivot to a foundry model mirrors TSM’s success but has bled cash and failed to attract key clients. Breaking even seems distant without a major strategy overhaul.
AI’s Missed Boom: Nvidia dominates AI chips, while Intel’s Gaudi GPU barely registers in the market. The data center division, once a growth engine, now generates 50% less revenue than in 2020.
Market Pulse:
"Pat Gelsinger’s exit is bittersweet. His vision was ambitious, but a fresh perspective might reignite investor confidence in Intel’s long-term prospects." — Chris Caso, Wolfe Research
Bull’s Take:
Intel’s beaten-down valuation could offer a turnaround play for patient investors. If the 18A node delivers and the foundry business stabilizes, a rebound could be dramatic. Intel also holds a strategic edge as the largest U.S.-based chipmaker benefiting from the $7.86 billion CHIPS Act.
Headlines
Delaware judge refuses to reinstate Elon Musk's $56 billion Tesla pay (link)
Trump Remains Opposed to US Steel Sale, Pledges Tariff Fix (link)
GM to sell stake in battery cell plant to joint venture partner for roughly $1 billion (link)
Stoli vodka files for bankruptcy in the United States (link)
Super Micro pops nearly 30% after special committee finds no ‘evidence of misconduct’ (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to WorkRetireDie
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