Markets Rise as Iran Talks Resume, Beijing Tightens AI Rules
Stocks are up more than +0.3% today, lifted by a solid start to earnings season and somewhat easing geopolitical tensions after the Israel-Lebanon ceasefire was extended by three weeks. The Iran situation remains fluid: President Trump ordered the U.S. Navy to fire on any vessel caught laying mines in the Strait of Hormuz, while Iranian Foreign Minister Abbas Araghchi is set to arrive in Islamabad for a second round of nuclear negotiations.
Intel Surges on Agentic AI Demand
Intel (INTC) is up +27% in premarket trading after Q1 results signaled a strong recovery driven by surging server CPU demand tied to agentic AI workloads. Analysts raised price targets sharply, citing Intel's fab advantage in a supply-constrained market. Competitors Advanced Micro Devices (AMD) and Arm (ARM) rose roughly +10% in sympathy, while Nvidia (NVDA) gained fractionally.
Microsoft and Meta Signal AI-Driven Workforce Cuts
Microsoft (MSFT) is offering voluntary buyouts to roughly 7% of its U.S. workforce, about 8,750 employees, the first such program in the company's 51-year history. Details go out May 7. Meta Platforms (META) separately confirmed job cuts next month and 6,000 open role closures to offset heavy AI spending.
Tesla Begins Cybercab Production
Tesla (TSLA) has started producing its long-awaited Cybercab robotaxi, with CEO Elon Musk confirming the launch today. Initial volumes will be slow given the new supply chain before ramping toward year-end. TSLA also noted Semi truck production begins soon, reinforcing its pivot away from traditional EVs toward autonomous platforms.
Taiwan Semi Hits Record as Investment Limits Ease
Taiwan Semiconductor Manufacturing (TSM) rose to a record high today after regulators raised single-stock fund limits from 10% to 25% of net assets, unlocking an estimated $6B in potential inflows. TSM shares gained as much as +5% and the Taiex Index surged +3%, the strongest gain in Asia today.
