NVIDIA Backs AI Labs Funding About a Quarter of Fiscal 2028 Business

Intel shares gained approximately 0.5% to $122.46 as Meta's Muse agent revived the case for server CPUs in an AI market dominated by accelerators. The Muse agent runs through its own virtual computer and can keep working on longer tasks even after a user exits the application, creating demand for general-purpose compute around the model itself. Intel is trying to capture that layer as its business rebounds, with second-quarter revenue rising 25% to $16.1 billion and the company rolling out its Xeon 6+ server processor built on Intel 18A. Still, Muse is evidence of a potentially expanding workload, not evidence of an Intel design win, and Intel now trades 281.26% above its $32.12 GF Value estimate. The real payoff comes only if autonomous agents drive incremental server deployments and Intel wins enough of that spending at attractive margins, making Xeon availability, power efficiency, hyperscaler adoption and Intel 18A execution the numbers investors should watch.

Microsoft's board approved an 8% increase in its quarterly dividend to $0.98 per share, payable December 10, extending a streak of annual dividend increases that now spans more than 20 years. The payout has climbed from $1.56 a share in 2017 to $3.64 for fiscal 2026, supported by cash from operations that rose $46.8 billion to $182.9 billion for fiscal year 2026. Azure and other cloud services grew 43% in the fourth quarter, but the company's aggressive spending on artificial intelligence and data-center infrastructure is pressuring free cash flow and cloud margins, a risk that could slow future dividend increases and buybacks if AI monetization lags. Hedge fund holders of the stock fell to 273 in the second quarter from 282 in the first, though Arrowstreet Capital raised its stake 14% to $10.31 billion and Fisher Asset Management lifted its position 3% to $9.92 billion, while short interest eased to 74.45 million shares as of August 31 from 81.31 million on July 31.