Canada’s expansion into the U.S. continued after Scotiabank (BNS) said on Monday that it would buy a minority stake in KeyCorp (KEY). BNS stock fell by 3.56% yesterday, while KEY stock jumped by 9.10%.
Scotia acquired a 14.9% ownership stake for $2.8 billion. KeyCorp needed this deal, which would infuse capital into its balance sheet. The Canadian bank benefits from acquiring assets at discounted prices.
Super Micro Computer (SMCI) is attracting buyers in the artificial intelligence market. SMCI gained 6.33% to close at $540.98. It bounced from $500 last week, which suggests that this is a support zone for the supplier of supercomputers in the AI market.
SMCI’s rally will lift Nvidia (NVDA) shares today. Markets are realizing that the latter’s Blackwell AI server is not delayed. Instead, Nvidia will release the server in limited quantities.
Expect Advanced Micro Devices (AMD) to trend higher, thanks to SMCI’s trading strength. Conversely, Intel (INTC) risks falling toward the $15 – $18 range. The stock fell sharply after posting weak guidance. Moody’s downgraded Intel’s debt from A3 to Baa1. The agency is forecasting weaker profitability for up to 18 months.
Although Qualcomm (QCOM), Broadcom (AVGO), and Micron (MU) may rally with Nvidia, Nvidia is the most attractive AI play at this time.