Tech Stock Roundup: Nvidia Denies Intel Acquisition, Xiaomi Outperforms US Rivals, Tesla Slump
- Nvidia dismissed rumors of an acquisition of Intel, while other giants are interested in Intel’s factory.
- Xiaomi, despite launching its first electric vehicle in March 2024, outpaced Ford and GM in EV sales.
- Tesla’s stock has plummeted 50% from its peak, making March its worst month ever.
Nvidia Won’t Buy Intel’s Foundry Division
In early March, Reuters reported that Nvidia was in discussions with AMD, Broadcom, and TSMC about a potential acquisition of Intel’s factory.
However, during Nvidia’s annual developer conference last week, CEO Jensen Huang dismissed any involvement in such an acquisition, saying , “Nobody invited me. Maybe other people are involved, but I don’t know. There might be a party. I wasn’t invited.”
Reports suggested that TSMC had approached Nvidia and other chip companies with a proposal for a joint venture to acquire Intel’s foundry division, while Broadcom has shown interest in Intel’s chip design business.
However, Intel’s future is far from decided. The company’s complex cross-licensing arrangement with AMD could disrupt any deal that doesn’t align with Intel’s interests, especially given AMD’s competition with Nvidia in the GPU market.
In his first week as Intel’s new CEO, Lip-Bu Tan has suggested he remains committed to the company’s integrated manufacturing approach, stating that Intel will continue to focus on restoring its position as a world-class product company and foundry.
Nvidia’s NVDA stock decreased by 3.3% last week while Intel’s INTC, after a strong previous week, only gained 0.9%.
Xiaomi Beats U.S. Carmakers
Despite launching its first electric vehicle (EV) in March 2024, Xiaomi sold more EVs last year than Ford and General Motors (GM) , selling 136,854 vehicles compared to Ford’s 97,000 and GM’s 114,400.
This achievement highlights the challenges American automakers face in the rapidly electrifying Chinese market, where local players like Xiaomi are increasingly dominating.
Although Xiaomi’s SU7 Series is currently only available in China, the Chinese auto market is massive—larger than both the European and American markets combined.
This growing dominance of local brands puts pressure on global automakers, particularly those struggling with weak demand in China. For instance, Ford’s sales in China have dropped in seven of the last eight years.
Bank of America analyst John Murphy even suggested that the “Big Three” automakers should consider exiting China.
Xiaomi stock in Hong Kong increased by 2.2% last week while Ford and GM increased by 2.8% and 3.0%, respectively.
Tesla Records Worst Month in Fifteen Years
March is shaping up to be Tesla’s worst month ever, with its stock down 50% from its all-time high just months ago. The electric vehicle giant is struggling with slowing global sales, challenges in its autonomous driving technology, and increasing public scrutiny of CEO Elon Musk and his ties to U.S. President Donald Trump.
Tesla shares dropped by 7% on Mar. 18, extending a nine-week losing streak and marking a 50% drop since December. In Europe, sales fell 50% in January. Additionally, Tesla faces issues with its Cybertruck, which was recalled due to a safety concern involving exterior trim panels.
Tesla’s self-driving ambitions have also hit roadblocks, with investigations into safety and misleading terminology, especially after high-profile crashes.
Furthermore, Tesla is dealing with backlash from U.S. trade tariffs under Trump, which have hurt Tesla and other U.S. companies. Meanwhile, protests and attacks against Tesla owners and dealerships have increased across the U.S. and Europe, adding to the company’s woes.
Tesla stock decreased by 0.5% last week but ended on a positive note, jumping by 5.3% on Friday. The positive trend may continue on Monday, as TSLA stock is gaining 3.8% during pre-market activity.
