Intel Bucks Chip Stock Sell-Off Amid Tariff Concerns

55 minutes ago

A potential deal with the Trump administration is shaping up to be a saving grace for Intel (INTC), which saw its shares climb Friday while other semiconductor stocks slid.

President Trump told a group of reporters aboard Air Force One Friday morning that he could put tariffs on imported chips as soon as next week.

“I’ll be setting tariffs next week and the week after, on steel and on, I would say chips—chips and semiconductors, we’ll be setting sometime next week, week after,” the president said in-flight, on the way to meet with Russian President Vladimir Putin in Alaska. “I’m going to have a rate that is going to be 200%, 300%,” Trump said. The White House didn’t immediately respond to a request for comment.

The PHLX Semiconductor Index (SOX) was recently down more than 2%. Intel was among a handful of the index’s constituents that was unscathed; shares were up more than 6%.

Reports that the Trump administration is considering taking a stake in Intel are giving the stock a boost. Discussions have included tapping the Chips Act—of which Trump has been a critic—to partially fund a stake in Intel, according to Bloomberg, citing people familiar with the matter. Deal talks follow on the heels of Intel CEO Lip-Bu Tan’s meeting with President Trump on Monday, after Trump publicly called for Tan’s resignation, citing purported China conflicts.

Lip-Bu Tan departs the White House on Monday after meeting with President Trump.

Alex Wroblewski / Bloomberg / Getty Images

A White House spokesperson told Investopedia any discussions “should be regarded as speculation unless officially announced by the Administration.” Intel did not immediately respond to queries about the talks.

Some analysts see the Trump administration as a potential “hero customer,” which Intel could use to fund development for its 14A process, a next-gen chip manufacturing technology that could boost chip speeds.

“Intel could of course use money to help capitalize the fabs given the heavy losses and cash burn, and help to support them during the (likely) years it will take to build up substantial customer base,” Bernstein analysts led by Stacy Rasgon wrote in a report Friday. Intel is already leaning on private equity deals to support building out semiconductor fabrication plants in and outside the U.S.

However, what Trump might want in return is an outstanding question, with investors waiting to see if Trump can “Make Intel Great Again,” the analysts said. The administration recently secured revenue-sharing deals with Nvidia (NVDA) and Advanced Micro Devices (AMD) in exchange for export licenses to resume sales of key AI chips to China.

Other market observers including Jim Cramer, and Morningstar’s Brian Colello also said Intel could likely use the help. “A stake could go a long way toward finishing what Gelsinger couldn’t afford to build but did it anyway,” Cramer tweeted Friday, referencing former Intel CEO Patrick Gelsinger, who stepped down in December.

–Cyrstal Kim

UnitedHealth Levels to Watch as Stock Surges

2 hr 20 min ago

UnitedHealth Group (UNH) shares surged Friday after Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) revealed a stake in the embattled healthcare giant.

The stock was up over 11% in recent trading at around $303. Still, shares of UnitedHealth have shed over a third of their value since the start of the year, weighed down by worries about investigations into the company’s Medicare billing practices, former CEO Andrew Witty’s sudden departure in May, and a downbeat forecast amid higher care costs.

Source: TradingView.com.

After bottoming at the start of August, UnitedHealth shares have continued to gain momentum, recently breaking out above a steep downtrend line that extends back to the April peak.

Moreover, the rally in the stock has coincided with the relative strength index moving back above its neutral threshold, indicating accelerating buying interest.

Investors may monitor major overhead areas on UnitedHealth’s chart around $325, $380 and $440, while also watching a key zone of support between $250 and $235.

Read the full technical analysis piece here.

–Timothy Smith

Where Berkshire’s Stock Investments Stood at End of Q2

3 hr 34 min ago

Warren Buffett’s Berkshire Hathaway revealed a position in embattled healthcare giant UnitedHealth Group and reported smaller stakes in longtime holdings Apple and Bank of America, according to a regulatory filing Thursday. 

Berkshire (BRK.A, BRK.B) at the end of the second quarter held 5 million shares of UnitedHealth Group (UNH) valued at about $1.6 billion. The company has likely been accumulating shares since the fourth quarter of last year, when it first asked regulators to let it build a position in secret to avoid a price spike. Shares of UnitedHealth Group jumped more than 11% this morning.

Berkshire also opened smaller new positions in security products provider Allegion (ALLE), homebuilder D.R. Horton (DHI), Lamar Advertising (LAMR), and steelmaker Nucor (NUE).

T-Mobile (TMUS) was Berkshire’s sole exit. The conglomerate sold the entirety of its $1 billion stake in the telecommunications giant. It also offloaded nearly half of its Charter Communications (CHTR) holdings.

 Berkshire made smaller cuts to two of its largest holdings, selling 20 million of its 300 million Apple (AAPL) shares and 26 million of its 630 million Bank of America (BAC) shares. Buffett began paring Berkshire’s stakes in both last year. 

Buffett scooped up 3 million shares of Chevron (CVX), another of his biggest holdings, and left stakes in longtime investments Coca-Cola (KO) and American Express (AXP) untouched. 

Berkshire slashed its exposure to banks in the first quarter, exiting its position in Citigroup (C) and trimming its holdings of Bank of America and Capital One (COF). On the flip side, the firm added to some of its food and beverage holdings, including alcohol maker Constellation Brands (STZ) and Domino’s Pizza (DPZ). 

In the second quarter, the firm seemed to favor homebuilders. On top of entering D.R. Horton, Berkshire bought about 7 million shares of competitor Lennar (LEN), upping its stake from just 150,000 shares. 

Berkshire shares have shed about 11% of their value since Buffett announced in early May that he would step down as CEO at the end of 2025.

–Colin Laidley

Applied Materials Stock Plunges on Weak Outlook

5 hr 4 min ago

Shares of Applied Materials (AMAT) sank in premarket trading Friday, a day after the semiconductor equipment manufacturer gave weaker-than-expected guidance as global economic and tariff worries impact its business, especially in China.

The company sees current-quarter adjusted earnings per share (EPS) between $1.91 and $2.31, and revenue between $6.20 billion and $7.20 billion. Analysts surveyed by Visible Alpha were looking for $2.37 and $7.30 billion, respectively. 

CEO Gary Dickerson said Applied Materials was “currently operating in a dynamic macroeconomic and policy environment, which is creating increased uncertainty and lower visibility in the near term, including for our China business.”

CFO Brice Hill added that the company anticipates lower revenue “driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing.”

The warning came as the company reported strong third-quarter results. Adjusted EPS came in at $2.48, with revenue rising 8% year-over-year to $7.30 billion. Both were ahead of Visible Alpha consensus estimates. 

Applied Materials shares were down 13% in recent trading. Entering Friday’s session, Applied Materials shares were more than 15% higher year-to-date.

–Bill McColl

Dow, S&P 500 Futures Point to Higher Open

5 hr 53 min ago

Futures tied to the Dow Jones Industrial Average rose 0.6%.

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S&P 500 futures added 0.2%.

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Nasdaq 100 futures were down fractionally.

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