Intel/Nvidia Partnership Fuels The Nasdaq 100 Rally

(MENAFN- Mid-East Info) By Daniela Sabin Hathorn, senior market analyst at Capital

• Nasdaq pushes to record highs as Intel/Nvidia partnership sparks a semiconductor rally
• Expectations of lower rates continue to drive equities higher

The Nasdaq 100 has hit a new high this week after what seemed like a dragged-out climb to reach the previous high just below the 24,000 level. The momentum has been classic one-two punch of AI/chip strength plus easier Fed policy.

First, the mega cap tech bid never really left: chipmakers and AI infrastructure names have been the key drivers of market strength, and it intensified after Nvidia said it will invest $5B in Intel, igniting a broad semiconductor rally. That single headline has helped push the Nasdaq to fresh records as it reinforced the market's core narrative that AI capex isn't slowing-it's broadening into new CPU+GPU designs and PC refresh cycles. In other words, the deal signalled more monetizable product roadmaps ahead, which is a key part of what pushes a growth-heavy index to new highs.

Intel corporation (INTC) daily chart:

Past performance is not a reliable indicator of future results.

Furthermore, the collaboration also eases a key investor worry-supply and platform concentration. Nvidia is pairing its own platforms with Intel's x86 and custom silicon, while still relying on TSMC for manufacturing of some parts, so the takeaway is that this a capacity plus product expansion rather than a zero-sum shift.

Second, policy and macro have turned from headwind to tailwind. The Fed's 25 bp cut and hints it could ease again gave equities cover, even as Powell avoided an ultra-dovish script. Lower expected policy rates-paired with evidence of a cooling labour market-supported multiples and the long-duration growth trade, allowing stocks to print additional record highs after the meeting. This is partly because markets expect the new Fed governor that will replace Jerome Powell next year will be significantly more dovish, as evidenced by Stephen Miran's dissent to vote for a 50bps cut at this week's meeting. So, stocks did wobble on Wednesday as the outlook was less dovish than priced in, but there are hopes that the course will be corrected in the post-Powell era, and that is what's continuing to drive the bullish momentum in the broader US stock market.

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