Market Beats | Goldman Stock Trading Profit Hits New Record; Kevin Hassett Claims US Will 100% Avoid Recession; Meta Antitrust Trial Kicks Off Today; Intel Divest 51% Stake in Altera; Nvidia Pledges to Invest $500 Billion in the US

—— Goldman Stock Trading Profit Hits New Record; Kevin Hassett Claims US Will 100% Avoid Recession; Meta Antitrust Trial Kicks Off Today; Intel Divest 51% Stake in Altera; Nvidia Pledges to Invest $500 Billion in the US

1. Goldman Stock Trading Profit Hits New Record

Broadcom Inc., a major player in the semiconductor industry and supplier to companies like Apple Inc., has announced a substantial share buyback program. The company plans to repurchase up to $10 billion of its shares, a move reflective of its confidence in the ongoing strength and potential of the chip sector.

This decision was revealed in a statement on Monday, and the board has authorized the repurchase to continue through December 31. Following the announcement, Broadcom’s shares saw an approximate 3% increase in late trading.

This strategic financial move comes at a time when Broadcom’s stock had experienced a significant decline, falling 34% this year through the close of regular trading in New York. This downturn was part of a wider tech rout, largely driven by concerns over tariffs impacting the industry.

Broadcom’s CEO, Hock Tan, emphasized that the buyback “reflects the board’s confidence in the strength of Broadcom’s diversified semiconductor and infrastructure software product franchises.” He also highlighted the company’s strategic position to aid large cloud-computing firms in embracing generative artificial intelligence technologies, marking a key area of growth and innovation for Broadcom.

This initiative underscores Broadcom’s optimistic outlook on its future and its commitment to delivering value to its shareholders despite the broader challenges facing the tech industry.

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2. Kevin Hassett Claims US Will 100% Avoid Recession

White House National Economic Council Director Kevin Hassett pushed back against growing concerns on Wall Street about a potential recession this year, despite fears over President Donald Trump’s aggressive tariff increases.

Speaking on Fox Business Monday, Hassett firmly rejected the idea of an economic downturn in 2025, saying, “100% not — 100% not.” He pointed to robust job market data, highlighting stronger-than-expected payroll growth earlier this month as evidence of economic resilience.

Hassett also emphasized that business leaders he speaks with aren’t overly worried about the impact of tariffs on production. “Everything’s through the roof, anecdotally, with the CEOs I’ve been talking to,” Hassett said. “When I ask them if the uncertainty over tariffs is slowing things down, they tell me, ‘No, in fact, we’re moving as much production onshore as possible.’”

Regarding trade negotiations, Hassett suggested the White House has received “more than 10” strong offers from trading partners as part of ongoing talks, though he didn’t name the countries involved or offer details on when deals might be finalized.

His comments come as financial markets remain uneasy about the risks of slower growth or recession driven by Trump’s escalating tariff war, even as the White House maintains confidence in the strength of the US economy.

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3. Intel Divest 51% Stake in Altera

Intel Corp. has reached a deal to sell a 51% controlling stake in its programmable chips unit, Altera, to private equity firm Silver Lake Management, as part of its broader strategy to streamline operations and focus on core businesses.

The transaction values Altera at $8.75 billion — significantly lower than the $16.7 billion Intel paid for the company back in 2015. Under the terms of the deal, Intel will retain a 49% minority stake in Altera, while Silver Lake will take operational control. The deal is expected to close in the second half of 2025.

As part of the spinoff, Altera will be led by new CEO Raghib Hussain, who joins from Marvell Technology Inc., where he served as president of products and technologies. He replaces Sandra Rivera, who had been leading the business within Intel.

Intel CEO Lip-Bu Tan framed the sale as a key step in Intel’s turnaround plan, saying it reflects the company’s commitment to sharpening strategic focus, cutting costs, and strengthening its balance sheet.

Intel’s programmable chip business, centered on Altera’s multi-use field programmable gate arrays (FPGAs), has primarily served the telecommunications sector. The sale comes after Intel publicly stated in 2024 its intention to offload a stake in Altera to unlock value and raise capital. According to Bloomberg, other potential bidders had included Lattice Semiconductor Corp. and several private equity firms.

News of the deal sent Intel shares up 4.1% in premarket trading on Monday.

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4. Meta Antitrust Trial Kicks Off Today

DFC Intelligence, a research firm specializing in gaming and digital media, has revised its global sales forecast for Nintendo Co.’s highly anticipated Switch 2 video game console. The new projection anticipates sales of 15 million units in 2025, a decrease from the previously estimated 17 million units. This adjustment is largely due to the economic uncertainties triggered by new tariffs imposed by US President Donald Trump.

Despite the downward revision, the Switch 2 is still expected to be the fastest-selling game console in history. However, the recent tariff announcements have cast a shadow over various industries, including gaming. The specific tariffs in question include a substantial 46% duty on goods imported from Vietnam, which is particularly impactful for Nintendo as the majority of Switch consoles are manufactured there.

This development has already had tangible effects on Nintendo’s operations, prompting the company to announce an indefinite delay in taking preorders for the Switch 2 in the United States.

DFC Intelligence highlights a significant concern that should these tariffs lead to considerable price increases for the Switch 2, many potential buyers might postpone their purchases, waiting for prices to stabilize or decrease. This scenario underscores the broader implications of trade policies on global supply chains and consumer purchasing decisions.

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5. Nvidia Pledges to Invest $500 Billion in the US

Nvidia Corp., the global leader in AI chip technology, announced plans to manufacture up to $500 billion worth of AI infrastructure in the US over the next four years, leveraging partnerships with major global manufacturing and technology firms.

Production of Nvidia’s newest AI chip, the Blackwell series, has already started at Taiwan Semiconductor Manufacturing Co.’s (TSMC) new facility in Phoenix, Arizona. In addition, Nvidia is expanding its US footprint by establishing AI supercomputer manufacturing sites in Texas, in collaboration with Foxconn and Wistron Corp. For advanced chip packaging and testing, the company is partnering with Amkor Technology Inc. and Siliconware Precision Industries Co. in Arizona.

Nvidia expects mass production from these US-based facilities to ramp up significantly over the next 12 to 15 months.

“This expansion of American manufacturing enables us to better meet the extraordinary and accelerating demand for AI chips and supercomputers, strengthens our supply chain, and increases our operational resilience,” said Nvidia CEO Jensen Huang in a statement.

This marks a major milestone for the US tech industry, as it will be the first time AI supercomputers are manufactured domestically. The announcement also received praise from President Donald Trump, who highlighted Nvidia’s US manufacturing plans on his Truth Social account Monday, framing it as a win for American industry and innovation amid rising global demand for AI technology.

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6. RMB Hits Record Low After PBOC Loosens Grip

The offshore yuan reached its lowest level ever recorded, amid signs that China is loosening its strict control over the currency. This shift comes as tensions escalate in the ongoing trade war with the United States.

In recent trading sessions in New York, the offshore yuan dropped by 0.5% to a record low of 7.3848 per dollar. Earlier the same day, the People’s Bank of China (PBOC) set the yuan’s daily reference rate at 7.2038 per dollar, marking the weakest level since September 2023. This move breached the 7.20 threshold, which investors often view as an unofficial indicator of China’s currency policy intentions. Similarly, the onshore yuan also fell to its weakest since September 2023.

Analysts, including Aroop Chatterjee from Wells Fargo in New York, believe that this depreciation is likely to continue and even accelerate. The PBOC’s actions suggest a shift towards allowing more flexibility in how the yuan’s value is determined. Chatterjee predicts that this managed depreciation could see the offshore yuan weakening to 7.50 per dollar or even further.

Such a trend indicates a strategic adjustment in China’s approach to managing its currency amidst heightened economic pressures from international conflicts and trade disagreements.

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7. US Stocks Tank Amid Tariffs

U.S. stocks faced a downturn on Friday afternoon, closing in negative territory as the automotive and Chinese sectors led the fall. This decline was primarily driven by an announcement from the White House confirming President Donald Trump’s intention to proceed with significant tariffs on imports from Mexico, Canada, and China starting Saturday.

Specifically, Trump’s administration plans to impose a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese imports. This news negatively impacted investor sentiment, particularly affecting a UBS Group AG basket of stocks deemed at risk from these tariffs, which plunged by 3.7%. Additionally, despite an initial gain, the S&P 500 Index ended the day down by 0.5%.

The financial markets reacted swiftly, with the Bloomberg Dollar Spot Index reaching a session high, indicating a flight to safety among investors. Meanwhile, the Cboe Volatility Index (VIX), often referred to as the “fear gauge,” increased to just over 16, reflecting growing uncertainty and risk aversion among traders.

The ongoing threat of tariffs has been a significant concern for U.S. equity markets since Trump’s election victory in November. Analysts and strategists have cautioned that such high levies could spark inflationary pressures, potentially leading to broader economic disruptions and negatively impacting stock valuations.

Given this backdrop, sectors such as automotive, technology, and manufacturing, which have substantial exposure to international trade, are particularly vulnerable to the effects of prolonged trade wars and the imposition of tariffs.

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