Investors who gave up on Intel (INTC) at around $20.00 missed out on the stock’s rally last week. INTC stock closed at $22.04 after markets speculated that the company would spin off its money-losing foundry operations.
Former Board member Lip-Bu Tan may have departed from the Intel position to join the spin-off committee. If this is true, Intel would plan to spin off its chip design and foundry operations. Intel would become fabless just like Nvidia (NVDA) and Advanced Micro Devices (AMD). That would lift Intel’s weakening operating margins.
Intel could face government pushback. The government issued generous subsidies and tax breaks to fund those investments.
Expect volatility in Nvidia (NVDA) to continue this week. Bears are in control. The stock price is trading at lower highs, from $140, in June to $138 in July and then $130 in August. NVDA stock closed at $119.37. Last week, the AI chip leader posted strong results. Shares fell because markets already priced in the perfectly good results.
In the banking sector, trade Nu Holdings (NU). The stock is up by 79.71% YTD. In the second quarter, Nu Holdings reported revenue of $2.8 billion, rising by 65% Y/Y. It successfully cross-sold and up-sold products. It launched attractive new products that customers wanted. The volatile share price would reward swing and day traders the most. Still, this is a cheap stock relative to its growth and size.
