Motley Fool Money

Episode: "Nvidia and Intel Make a $5 Billion Bargain"

Date: September 18, 2025
Host: Tyler Crowe
Guests: John Quast, Matt Frankel

Episode Overview

This episode dives into the game-changing partnership between Nvidia and Intel, spotlighting Nvidia's $5 billion equity stake in Intel and their collaborative venture to co-develop data center and PC hardware. The discussion spans the implications for industry competitors (notably AMD), potential antitrust concerns, and the broader impact on the semiconductor landscape. The panel also debates the relevance of quarterly earnings reporting, referencing recent comments from former President Trump, and closes with "Stocks on Our Radar," featuring deep dives into The Trade Desk, General Motors, and Celestica.

1. Nvidia and Intel’s $5 Billion Partnership

[00:00–06:22]

Key Discussion Points

• Nvidia's $5 Billion Move:

  • Nvidia will acquire a $5B equity stake in Intel.
  • Both companies to co-develop custom hardware for data centers and PCs.

• Technical Rationale:

  • Nvidia dominates the GPU market (~90% share) but CPUs, which control these GPUs, remain dominated by Intel and AMD.
  • GPUs link via "NVLink" for high-speed GPU-to-GPU connections. The latest "NVLink Fusion" supports semi-custom CPU chips tightly linked to GPUs, enabling faster data flow.

• Intel’s Motivation:

  • Counters AMD’s creeping threat in the CPU space.
  • Strengthens Intel’s balance sheet, offsetting R&D costs.

• Manufacturing Uncertainties:

  • No immediate changes for Taiwan Semiconductor (TSMC) as the current deal is about development, not manufacturing.
  • "To me, this seems like it's more of an AMD thing. Intel is a little bit worried about AMD taking market share from it when it comes to CPUs." – John Quast [03:25]

Notable Quote

"Nvidia is the market share leader in GPUs...But GPUs get their marching orders from CPUs and Nvidia is not the market leader in that."
— John Quast [01:38]

Potential Impacts

• Regulatory Scrutiny:
  • Possibility of court challenges:

"Would not surprise me at all if someone—maybe AMD—went and said that this seems like an uncompetitive move."
— Matt Frankel [04:54]

• Effect on AMD:
  • Threat to AMD’s competitive advantage of offering both CPUs and GPUs.
  • "If those two [Nvidia and Intel] are joining forces, that's kind of the same thing." – Matt Frankel [05:10]
  • Historic resilience of AMD under CEO Lisa Su; AMD remains a threat to both Intel and Nvidia.

2. The Value (or Not) of Quarterly Earnings

[07:40–12:30]

Introduction

Prompted by Donald Trump’s public critique, the panel examines whether companies should move from quarterly to semiannual earnings reports.

Key Points

• Information for Investors:

  • Quarterly reporting provides valuable insights, especially for younger, growth-stage companies.
  • But, single quarters rarely change long-term investment theses unless showing a fundamental business shift.

• Cost & Global Practice:

  • Quarterly reporting costs average $1.5M per company; semiannual reporting is the norm in the UK and much of Europe.
  • Shift to semiannual reporting in the UK didn’t reduce short-term focus.

• Quarterly Guidance vs. Reporting:

  • Biggest problem: not the frequency of reports, but the pressure of issuing quarterly guidance, prompting short-term thinking.
  • "I'd rather see companies simply move away from issuing quarterly guidance. Some have done that."
    — Matt Frankel [10:13]

• Compliance & Discovering Bad Actors:

  • Frequent reporting can identify problems or fraud quickly (citing Enron, Valeant as examples):

"If it was done on a semiannual basis instead of quarterly, those things would just kind of sit on the market or fester longer."
— Tyler Crowe [13:10]

Notable Quotes

• "Warren Buffett...pointed out that he loves reading the quarterly reports, but he actually dislikes it when the companies give that quarterly guidance."
  — John Quast [11:04]

• "By definition, we are looking for management teams that are also thinking about the long term like we are."
  — John Quast [11:24]

3. Stocks on Our Radar

[14:35–18:45]

Each analyst shares a stock they’re watching:

John Quast: The Trade Desk (TTD)

[14:57]

• Why Watch:
  • Worst performer YTD in the S&P 500 (down 62%).
  • Management’s gloomy guidance for Q3 due to rocky AI product ("Kokai") rollout.
  • Customers complain about usability; management actively iterating fixes.
  • Strong historical record; current issues may be temporary.
• Quote:

  "Management is listening and making those changes...Maybe this Q3 growth slowness is just a blip."
  — John Quast [16:21]

Matt Frankel: General Motors (GM)

[16:54]

• Why Watch:

  • Poised to benefit from a falling rate environment (more auto loans).
  • Massive stock buybacks; share count reduced 37% in 3 years.
  • Restructured and growing China unit.
  • #2 in US EV market; EVs gaining traction.
  • Personal anecdote: Matt’s family just bought a GM EV.

• Quote:

  "GM has done a great job of aggressively buying back stock while it trades for a PE of less than 8."
  — Matt Frankel [17:20]

Tyler Crowe: Celestica (CLS)

[17:55]

• Why Watch:

  • Electronics manufacturing services company, quietly benefiting from AI infrastructure boom.
  • Assembling components and server racks for hyperscalers (accounts for 40% of revenue).
  • An example of a “boring” business thriving due to AI demand.
  • Cautions on cyclicality; party could end quickly if environment shifts.
  • Nvidia-Intel deal may not impact directly, but helps the mood in the sector.

• Quote:

  "There are dozens of these Celesticas out there...turned into market darlings thanks to AI."
  — Tyler Crowe [18:25]

Notable & Memorable Moments

• Tech Dynamics:

  • The Nvidia-Intel deal is positioned less as a threat to TSMC, more as an alliance to slow AMD’s ascent.
  • Discussion of antitrust risks if competitors (Nvidia, Intel) vertically integrate.

• Earnings Debate:

  • Strong, thoughtful contrast between professional analyst use (valuable for trend spotting) and long-term investor focus (reports as background health checks).
  • The panel is united in their dislike of quarterly guidance, but split on abolishing quarterly reports.

• Radar Segment Levity:

  • Self-aware “dumpster diving” jokes as analysts highlight beaten-down stocks.
  • Yahoo’s resurgence in ad tech gets a rare mention.
  • Personal investment anecdotes add color and authenticity.

Timestamps for Key Segments

• Nvidia-Intel Deal Breakdown: [00:00–06:22]
• Quarterly Earnings Discussion: [07:40–12:30]
• Stocks on Our Radar: [14:35–18:45]

Overall Tone:
Conversational, analytical, and accessible—balancing light humor with deep insights.

Final Takeaways:

• Nvidia and Intel’s partnership shakes up the semiconductor chessboard, with potential ripple effects for AMD and others.
• The debate over quarterly earnings reporting remains unresolved, but the consensus is that guidance, not reports themselves, distorts incentives.
• Investors should keep an eye on fallen stars (like The Trade Desk, GM) and overlooked infrastructure enablers (like Celestica) in the AI-fueled market surge.

Memorable Quote:

"If a company's scared of you, that's a good thing, in my opinion."
— Matt Frankel [06:01]

For more details, analysis, and a bit of Wall Street humor, catch the full episode of Motley Fool Money.