CNBC's "Fast Money" Podcast Summary Episode Title: Microsoft’s AI Pullback… And Intel’s Semi Shift
Release Date: July 2, 2025

Introduction

In the July 2, 2025 episode of CNBC's "Fast Money," host Melissa Lee and a panel of top traders dive deep into the seismic shifts occurring in the tech and financial markets. From Microsoft's strategic retreat in AI chip development to Intel's potential transformation in the semiconductor industry, the episode offers a comprehensive analysis of the latest market movements and their broader implications for investors.

1. Microsoft’s AI Chip Scaling Back and Job Cuts

The episode opens with significant news about Microsoft:

• Host Introduction (01:03): Melissa Lee sets the stage by highlighting Microsoft's recent downturn, noting, "Microsoft is reportedly scaling back on its chip ambitions and cutting thousands of jobs."

• Detailed Analysis (02:09 - 03:34):

  • Steve Kovac explains that Microsoft is reducing its plans for AI server chips despite being a major customer of Nvidia. "Microsoft tells me work will continue on its own chips, but this pretty much guarantees that Nvidia is going to have Microsoft as a customer for some time" (02:15).
  • Tim Seymour adds context about the scale of layoffs: "9,000 employees laid off today across the company. That brings the total to 15,000 employees laid off at Microsoft so far this year" (03:08).

2. Market Reactions and Analysis

The panel discusses the broader market implications of Microsoft's decisions:

• Steve Kovac (03:41): Emphasizes that despite layoffs, Microsoft's push into AI continues, pointing out Nvidia's potential to reach a $4 trillion market cap.

• Karen Fineman (05:15): Highlights the resilience in the demand for processing power, stating, "It doesn't seem like the demand part, which would be the real thing that would make the stock turn, is changing at all for the worse. In fact, I think it's getting better."

3. Nvidia's Market Position

Nvidia emerges as a dominant player in the AI and semiconductor markets:

• Steve Kovac (04:00): "Nvidia is going to be competing with them [Microsoft] in data centers too. So it's becoming like a pretty love triangle here."

• Dan Nathan (05:15): Stresses Nvidia's leadership and AMD's unexpected performance, "I like AMD" (05:15).

4. Oracle and Stock Movements

Oracle's stock hits new highs amid positive associations with Nvidia:

• Steve Kovac (03:29): Notes Oracle's surge following Bloomberg's report on OpenAI renting its data centers for the Stargate project.

5. Apple Stock Update

Apple experiences mixed sentiments despite stock movements:

• Melissa Lee (18:28): Reports Apple rising another 2% for its fourth straight day, with Jefferies upgrading the stock to a hold.

• Steve Kovac (19:05): Critiques Apple's lack of an AI strategy, saying, "There’s nothing here we don’t know about this story. There’s a lot of upside to the world's biggest handset maker at a time when AI in your handset is what you're looking for."

6. Tesla's Vehicle Deliveries vs. Stock Performance

Tesla's shares climb despite a decline in vehicle deliveries:

• Tim Seymour (23:37): Explains that Tesla's deliveries were just shy of analyst estimates, yet the stock rose by 5%.

• Steve Kovac (27:02): Points out competitive pressures in China, "They’re competing with BYD, which is the number one EV seller in China. And the ASPs for Tesla in China are nearly double that of BYD."

7. Health Insurers’ Stock Decline

Centene and other managed care stocks take a significant hit:

• Melissa Lee (31:09): Reports Centene plummeting over 40% after withdrawing its 2025 guidance.

• Karen Fineman (31:42): Comments on the widespread impact: "Nothing to love here at all... Centene's mix is the worst of the bunch in terms of all the areas that are hit."

8. Intel’s Foundry Business Shift

Intel considers major changes to its foundry operations:

• Melissa Lee (34:09): Introduces the topic, "Intel shares 4% lower after a Reuters report that the chip maker is considering a major change to its foundry business."

• Stacey Raskin (34:45): Analyzes Intel's struggles with process delays and competitiveness, "They're shipping what's called 7 nanometers now. That was, what they used to call 10, which was supposed to ship in 2015."

9. Trade Deal with Vietnam and Nike’s Stock Boost

A new trade framework with Vietnam propels Nike's stock:

• Melissa Lee (40:23): Shares Nike's 4% jump following President Trump's announcement of a trade deal with Vietnam, "The country accounts for half of Nike's footwear and more than a quarter of clothing production."

• Dan Nathan (41:20): Discusses the symbolic importance of the deal for manufacturers like Nike, "This is symbolic because again, I do think this isn't really what took Nike down."

10. Netflix and Spotify Partnership Talks

Netflix explores partnerships with Spotify to enhance its streaming offerings:

• Melissa Lee (43:02): Reports on Netflix's discussions with Spotify about potential programs like music award shows and live concerts.

• Dan Nathan (43:54): Supports the strategic move, "There's economies of scale in that business model... to become more of a one-stop app."

11. Quantum Computing and Cryptocurrency Market Trends

Advancements and investor sentiments in quantum computing and cryptocurrencies:

• Steve Kovac (33:58): Highlights Cantor's positive ratings on quantum computing firms and the surge in Bitcoin above $100,000, "It's getting a lift when there's a risk-on sentiment in the market."

12. Final Thoughts and Trades

The panel wraps up with final trade suggestions and market outlooks:

• Dan Nathan (45:38): Encourages staying long on certain market segments despite recent fluctuations.

• Steve Kovac (45:50): Mentions Intel's acquisition news, "Datadog is taking over for Juniper Networks, and shares are up about 8%."

Notable Quotes

• Steve Kovac (02:15): "Nvidia is going to be competing with them [Microsoft] in data centers too."

• Karen Fineman (05:15): "There’s a lot of demand for processing power. It’s getting better."

• Stacey Raskin (34:45): "Intel is behind on process and trying to catch up; it's not a great look."

• Dan Nathan (43:54): "Netflix should leverage their platform to become more of a one-stop app."

Conclusion

The July 2nd episode of "Fast Money" provides a thorough examination of critical developments in the tech and financial sectors. From Microsoft's strategic recalibrations in AI to Intel's ongoing challenges in the semiconductor race, the episode underscores the dynamic nature of these industries. Additionally, the discussions around Tesla, Nike, and the evolving landscape of health insurers offer investors valuable insights into current market trends and future opportunities.

For listeners seeking a detailed analysis of today's most impactful financial news, this episode serves as an indispensable resource.