Intel Stock Jumps After Nvidia Buys Stake; FactSet Falls

The announcement of a major investment from and partnership with an artificial intelligence chip leader helped send shares of a semiconductor giant surging, while a financial data provider faced pressure after a lackluster earnings report.

The S&P 500 jumped 0.5% to notch an all-time closing high a day after the Federal Reserve announced a widely expected interest-rate cut. The Dow and the Nasdaq gained 0.3% and 0.9%, respectively, joining the benchmark index at records. For Investopedia’s full coverage of the trading day, read here.

Nvidia (NVDA) said it would invest $5 billion in semiconductor industry peer Intel (INTC) and that the two companies will collaborate on cutting-edge chips for computers and data centers. The vote of confidence from Nvidia came just a few weeks after Intel agreed to a deal giving the U.S. government a 10% stake in the company. Intel shares skyrocketed 23% on Thursday, outpacing all other stocks in the S&P 500, while Nvidia stock was up 3.5%.

Shares of Intel partner Synopsys (SNPS), a provider of electronic design automation software used in the chipmaking process, jumped 13%. The potential for increased demand from a major customer helped Synopsys stock regain some ground after a major move lower last week, when the company reported lower-than-expected revenue and adjusted profit results and slashed its full-year outlook.

CrowdStrike (CRWD) shares surged 13% after the cybersecurity firm offered an improved outlook for annual recurring revenue. In the summer of 2024, CrowdStrike stock plunged and sales growth came under pressure in the wake of a widespread technology outage tied to a faulty software update, but the company has staged a recovery over the past year.

The steepest decline in the S&P 500 on Thursday belonged to shares of financial data and software provider FactSet Research Systems (FDS), which tumbled more than 10%. The company’s quarterly adjusted earnings per share and profit forecast for fiscal 2026 came in below consensus estimates. Increased technology expenses weighed on FactSet’s adjusted operating margin, which slipped year-over-year.

Darden Restaurants (DRI) also reported lower-than-expected quarterly profits, and its shares lost 7.7%. While same-store sales growth from its Olive Garden and LongHorn Steakhouse helped Darden match revenue estimates, the company reported declines in its fine-dining business. The company cautioned that high food and labor costs could weigh on future earnings as it aims to maintain lower prices.

Nucor (NUE) shares fell 6% after the steelmaker provided lower-than-expected profit guidance for the third quarter. The company pointed to pressure in all its key segments, with volume declines affecting its steel mills, increased cost per ton weighing on its steel products business, and profitability issues with scrap operations dragging on the raw materials segment.