Intel Hits All-Time High for First Time in 26 Years, Nike Cuts 1,400 Jobs

Markets pulled back Thursday, with the S&P 500 down 0.4% and Nasdaq off nearly 1%, led by weakness in tech. Within tech, semiconductors surged—the SOXX index on a 17-day winning streak—while software stocks plunged, including ServiceNow down 18%, IBM off 8%, and the IGV ETF dropping nearly 6%, its worst day since last April. Next week brings earnings from five big tech firms and a Fed meeting, possibly Jerome Powell's last.

Semiconductor Strength Led by Intel

Intel reported strong earnings, with revenue up 7% to $13.6 billion, driven by a 22% rise in data center sales to $5.1 billion. AI agents have boosted demand for CPUs, which Intel specializes in; these act as the all-purpose brain directing tasks, with the CPU-to-GPU ratio shifting from 1:8 to 1:4, effectively doubling CPU needs. While GPUs initially propelled Nvidia and AMD, CPUs now play a key role.

The stock jumped 20% to all-time highs, unseen in 26 years, after gaining 80% pre-earnings. New CEO Lip Butan has driven the turnaround: securing US government investments, NVIDIA partnerships, and a deal with Elon Musk for chips at Tesla's Austin complex, potentially worth $3 billion. A year ago, amid CEO Pat Gelsinger's firing and shares below $20, talks swirled of breakup or acquisition.