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Good Morning! 👋
Special edition newsletter today! It’s time for some competition… 🏀 👀 First, here’s what’s moving the markets today:
👉 Intel and the CHIPS ACT
👉 Saudi explores $40 billion AI fund
👉 Mortgage rates soar again
Get excited because it’s almost GRIT’S MARCH STOCK MARKET MADNESS! 📈 March is one of our favorite months here at GRIT because we get to do our GRIT Stock Market Madness Bracket! Join us on March 21st for the kickoff… who will reign the supreme stock? We shall see… 👀
Now, let’s get into what’s happening today:
INTEL: CHIPS Act
The White House has announced that Intel will get up to $8.5 billion from the CHIPS Act, part of President Biden's push to increase chip making in the U.S. Intel might also get an additional $11 billion in loans from another act. These funds, to be detailed by President Biden in Arizona, aim to keep the U.S. leading in chip technology. This agreement could still change, as stated by both Intel and the White House.
Source: Yahoo Finance
Despite facing competition from companies like Nvidia, AMD, and Qualcomm, Intel remains important because it both designs and manufactures chips. This capability is rare since most competitors outsource their manufacturing. The CHIPS Act funding will help Intel expand its facilities in states like Arizona and Ohio, focusing on advanced manufacturing. Intel's efforts, including a massive new factory in Ohio, are expected to create jobs for 30,000 people and strengthen U.S. chip production.
🎯 GRIT TAKE: One of the main reasons behind...Upgrade to GRIT VIP to read the full GRIT Take!
SAUDI: AI Fund
Saudi Arabia's sovereign wealth fund is discussing a $40 billion artificial intelligence investment fund with the American venture capital firm Andreessen Horowitz. These talks, part of a plan to diversify Saudi Arabia's economy beyond oil, involve creating a partnership between the fund and Andreessen Horowitz, but details haven't been finalized yet.
Source: CNN
The Saudi fund has made significant investments globally, including in companies like Uber and Bank of America. Andreessen Horowitz, known for backing major tech firms like Facebook and Airbnb, manages $35 billion and has a strong focus on AI startups.
Mortgage: Rates Soar
Mortgage rates in the US are nearing 7%, leading to a drop in home purchase applications. The average rate for a 30-year fixed mortgage rose by 13 basis points, reaching 6.97% for the week ending March 15, as reported by the Mortgage Bankers Association on Wednesday.
Source: Adobe
Consequently, the MBA's index for home purchase mortgage applications saw a decrease of 1.2%, settling at 146. Although mortgage rates have declined from a high of nearly 8% in October, they are still over double what they were in 2021 before the Federal Reserve initiated a series of rate hikes to combat inflation. It is anticipated that a reduction in rates by the Fed around mid-year could stimulate demand in the housing market.
Headlines You Need To Know: 🎙
Chart of the Day
📊 Top Chip Manufactures
Source: StatsPanda
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