Nvidia's PC Chip Split the Group
Rebased to 100 on May 1. The four lines split on June 1: the chip Nvidia launched lifts Dell, the incumbents it challenges fall.
Nvidia rose 6.3% on its first PC processor. Qualcomm fell 8.8%, Intel 4.7%. Dell rose 10.7%, HP 8.5%. WTI crude spiked 5.5% to 92 and ISM manufacturing hit a three-year high of 54.
Rebased to 100 on May 1. The four lines split on June 1: the chip Nvidia launched lifts Dell, the incumbents it challenges fall.
Nvidia closed up 6.3% at 224.36 after unveiling its first chip built to run a Windows PC, the RTX Spark, pairing a new Arm-based Grace central processor with a Blackwell graphics core. The design was developed with MediaTek and Microsoft.
The chip will ship this fall in laptops from Microsoft, Dell, HP, Asus, Lenovo and MSI, putting Nvidia into a market long held by Intel, AMD, Qualcomm and Apple. The stock has added 6.0% since the launch was teased over the weekend, and at a market value near 5.5 trillion it remains the heaviest weight in the S&P 500.
Qualcomm dropped 8.8% to 228.99, the day's worst large-cap move, because its Snapdragon X line is the current Arm-based Windows chip that Nvidia's Grace part directly targets. Intel fell 4.7% to 109.33 as the same launch threatened the x86 franchise it still leads in laptops.
The reaction was selective. AMD slipped only 1.2% to 510.13 and Apple eased 1.8% to 306.31, both insulated by their own silicon roadmaps rather than the Windows-on-Arm contest where Qualcomm sits.
Dell rose 10.7% to 465.96, extending a run that began with its 33% server-revenue jump on May 29, because Dell is among the first to ship the Nvidia chip. HP Inc rose 8.5% to 29.34 on the same read.
The split inside the chip group, suppliers of the new part up and incumbents down, was the clearest single-day dispersion in semiconductors since the memory re-rating a week earlier.
Micron rose 6.6% to 1,035.50, holding above the trillion-dollar mark it first crossed on May 26, as a new Nvidia consumer part read as incremental memory demand. Taiwan Semiconductor added 4.1% to 435.63 as the foundry that builds the chip.
Broadcom rose 3.0% to 459.97 and Microsoft, a named partner on the design, rose 2.3% to 460.52. The technology sector fund climbed 2.5%, nine times the S&P 500's gain.
Rebased to 100 on May 1. The memory, foundry and custom-silicon names that feed the chip all closed higher.
WTI crude jumped 5.5% to 92.19 and Brent rose 3.4% to 95.15, rebounding from a six-week low as the US and Iran exchanged revisions to a draft deal without a breakthrough. The Strait of Hormuz has been effectively closed to traffic since late February, a route that carried close to a fifth of seaborne oil.
The market that Hormuz traffic returns to normal by the end of June sat at 18% into the close, down from the 46% it reached on May 26, and the bet on a return by July 31 held near 40%. Energy was the day's leading sector: Exxon rose 2.8% to 149.38, Chevron 1.9% to 185.83, and the sector fund 1.8%.
Hourly, rebased to 100. Both grades stepped up on June 1 as the reopening odds fell back.
The ISM Manufacturing index printed 54.0 for May, up from 52.7 and the highest since May 2022, beating the 53 the street expected and marking a fifth straight month of expansion. New orders rose to 56.8 from 54.1.
The prices-paid index stayed elevated at 82.1, down from 84.6 but still signaling broad input-cost pressure, while the employment index held below 50 at 48.6. The ten-year Treasury yield rose to 4.47% and the long bond fund eased 0.3%, a growth-and-oil move rather than a Fed one, with the market on no change at the June meeting at 98%.
Hewlett Packard Enterprise rose 9.2% to 47.00 into a post-close report Wall Street expected to show revenue near 9.8 billion, up about 29% from a year earlier, with the Juniper-fed networking line that grew 152% in the prior quarter the number in focus. Credo Technology slipped 4.2% to 226.10 ahead of its own print, where analysts looked for revenue near 433 million, up more than 150% on AI-connectivity demand.
Both names sit downstream of the same data-center build that lifted the broader group, and their guidance is the next read on whether the AI-hardware order book is still accelerating.
The S&P 500 added 0.27% to a record 758.54 on the fund, and the Nasdaq 100 fund rose 0.6%, both carried by the tech tape. The Dow gained only 0.13% and the Russell 2000 fell 0.5%, the rally narrow rather than broad.
The VIX rose 4.8% to 16.05 even as the index set a record, the dollar firmed 0.3%, and gold eased 1.1% to 4,512.80. The market paid up for a single product launch and a higher oil price on the same day.