Category: Penny Stocks

Intel Corp. shares surged 22% in February, partly on hopes that the chip maker could engage in a sale of all or parts of its business.

But Intel’s stock INTC was moving higher on Monday for a different reason, and one that has more to do with the company’s actual business. Reuters reported that Nvidia Corp. NVDA and Broadcom Inc. AVGO are testing out the company’s 18A manufacturing technology.

Capri Holdings Ltd.’s stock soared 8.9% early Monday, after a report that the company is close to selling its Versace brand to Italian fashion company Prada SpA in a deal valued at 1.5 billion euros.

The Italian family-owned Prada HK:1913 PRDSY has agreed to that price, Bloomberg reported, citing people familiar with the matter. Versace was founded by the late Gianni Versace in 1878 and is currently run by his sister Donatella.

February — the shortest month of the year — felt anything but brief as heightened macro uncertainty gripped Wall Street, with seemingly endless twists and turns on the U.S. stock market. 

Despite rising sharply on Friday, U.S. stocks wrapped up February on a grim note. Tumbling nearly 4% last month, the tech-heavy Nasdaq Composite COMP suffered its biggest monthly decline since April 2024. The S&P 500 SPX and the Dow Jones Industrial Average DJIA were each off around 1.5%, logging their worst month since December, according to Dow Jones Market Data. 

Investor excitement over generative artificial intelligence continues to center on the installation of graphics-processing units (GPU) and related equipment by data centers, which support their corporate clients’ efforts to develop the new technology. Nvidia Corp. NVDA continues to dominate that market. But a long-term investor might be well served to think about what companies will actually do with the technology.

Nicole Kornitzer has been the portfolio manager for the Buffalo International Fund BUFIX since 2009. She is based in Paris, although Kornitzer Capital Management, which manages the Buffalo Funds, is based in Mission, Kan. Kornitzer Capital Management has about $7 billion in assets under management through mutual funds and for institutional and private clients. The firm was founded by John Kornitzer, Nicole’s father, in 1989.

U.S. Treasury Secretary Scott Bessent recently declared that the Trump administration was mainly focused on lowering the 10-year U.S. Treasury BX:TMUBMUSD10Y yield. He seems to be accomplishing that goal. Yields are moderating, and the MOVE Index, which measures bond-market volatility, is relatively tame. Bessent is achieving his objective, but at a price — by tanking the U.S. economy.

A recent Wall Street Journal article revealed that the top 10% of Americans account for about half of all consumer spending. The cumulative excess savings of this group rose and remained steady in the wake of massive fiscal and monetary COVID-era stimulus. By contrast, the excess savings of the other 90%of Americans have declined.

Nvidia Corp.’s market performance over the past six months is a good illustration of the difference between a good company and a good stock.

Nvidia — the company — has performed phenomenally. Its cumulative earnings per share over the past two quarters were more than 800% higher than the comparable two-quarter total a year earlier. Yet Nvidia’s stock NVDA fell after the company’s earnings report last week.