Closing Bell - Markets Weigh Intel Earnings, Oil Moves and IPO Momentum as Investors Reassess the Outlook 4/23/26

Episode Date: April 23, 2026

Intel takes center stage after the stock soared on earnings. Gil Luria of D.A. Davidson analyzes what they mean for the semiconductor landscape and AI competition. Cameron Dawson, CIO at NewEdge Wealth, and Steve Sosnick of Interactive Brokers debate the market outlook and how investors should position from here. Huntington Bank CEO Stephen Steinour discusses bank earnings and what they signal for lending and the economy. Rodney Comegys, CIO at Vanguard Capital Management, examines the IPO market and whether activity is picking up. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The bell bringing an end to the trading day at the NYSC, Newberger-Berman, ringing the bell, and at the NASDAQ, its winged venture capital. Welcome to closing bell overtime live from Studio B at the NASDAQ market site. I'm Mike Santoli. Melissa Lee has the day off. Stocks lower across the board, modestly so, the Dow down about 200 points, S&P 500, down around half a percent, and a loss of about 1% for the NASDAQ. Actually, those losses were narrowed near the close.

We'll have much more on the markets coming up. Also on our radar at the close, earnings from Intel due out any minute. Will they be strong enough to keep the stocks run going up 50% in April? We also got earnings today from Huntington Bank. We'll talk to that CEO. And a flood of huge IPOs is coming. We'll look at how all that money moving into new issues could impact the broader markets. Let's start with tech as we're once again seeing a big split between chips and software.

Simomodi joining us now with this divergence Sima. Yeah, Mike, that's exactly right. The divergence between chips in software, that was really the big story. In fact, it was the biggest daily outperformance of chips over software since April 8th, semiconductors getting a lit from Texas Instruments. It's upbeat guide due to high demand for its analog chips that are becoming increasingly crucial to the AI data center buildout. But the earning story in software failing to really lift confidence today,

both Service Now and IBM citing the negative impact of the war, service now seeing a 75 basis point hit to subscription revenue growth, while IBM didn't deliver the upward revision to sales guidance that some analysts were hoping for. It was still a strong quarter, but the stock ending down by 8% on the day. Those results weighing on other names across software, names like Workday, Salesforce, city analysts calling it really a cautious start to large-cap software earning season. And the street will be looking for further proof points when Microsoft reports next Wednesday, Twilio and Atlassian on Thursday. elsewhere, United Rentals rising sharply after posting better than expected quarterly numbers, boosted by the commercial property sector.

That stock up over 22 percent, its biggest intraday gain in six years, Mike. Yes, so many excitable erratic moves up and down. Seema, thank you very much. Intel earnings are out. That stock moving. Christina Parts of Nevelis has the numbers. Yeah, moving quite dramatically because first quarter results came in well ahead of expectations just across the board.

Adjusted EPS earnings per share came in at 20. That's against a street estimate of just a penny. That's the highest estimate on the street was actually seven cents. So this just blew past even the most optimistic calls. Revenue, and that's my stock is surging 12%. I'll get to the guidance second, but revenue $13.5 billion. That's 9% above consensus. The biggest revenue beat in over five years that topped every single analyst estimate. Gross margins coming in at 41% for the quarter. All three segments beat with Foundry and Data Center really leading the upside. I just spoke with the CFO. Dave Zizner, who said part of the beat came from inventory.

They had previously written off product that they thought was end of life, but customers needed it and they were able to move it forward. And also because of pricing. He admitted across the board they have increased prices and they will continue to do so. The guidance, very strong. Intel sees Q2 revenue of $13.8 to $14.8 billion. That's above consensus even at the low end. EPS and margins guide also beating as well.

The CFO, Dave Zizner, said both pricing, and improving output will be meaningful contributors going forward, so expect prices to go higher. On the client's side, he acknowledged that memory costs have been going higher and it's likely going to weigh on PCs in the back half of the year, but said that actually works in their favor because data center demand is so strong they need to ship capacity over anyway. And then two last things. Zizner also said he now expects advanced packaging to be a multi-billion dollar per customer business, up from hundreds of millions of dollars. And on TerraFab with Elon Musk, He said that he's confident there's a win-win situation, though.

The details are still being worked out between Elon Musk and the CEO of Intel Lip Boot Tens. We didn't actually get any numbers, and I doubt there'll be any numbers provided on the earnings call regarding that tariff-fab deal. Yeah, just another thing, I guess, to dangle ahead of investors at this point. So, Christina, with the data center and AI revenue amounting to about 40% of product revenue in the latest quarter, I guess that really does speak to how this company's character is changing, at least in the minds of investors. Exactly, because the CFO also pointed to that. They're not too concerned about PC prices going up anyways in the second half of this year because they're going to be shifting their focus to data centers anyway.

So that is telling you where their business is focused. And you can see the share price really just soaring right now, almost 17% higher solely because of the guidance, because the pricing increase, because they were able to find a home for chips. that they were thought previously dead, which, by the way, the CFO said they're probably not going to be able to do that next quarter, but nonetheless, this is all helping the narrative that things are turning around at Intel. No doubt. I'm really just giving encouragement to the people who are chasing it into today. Christina. Thank you very much. Joining us now is D.A. Davidson managing director, Gil Luria. So, Gil, I mean, look, the stock was up 50% going into today's close this month alone. Here we are adding to it. Is it enough to really change the story in your mind?

It is because this is the quarter where Intel joins the party. Nvidia, then Broadcom, then AMD, then Micron, all had these massive inflection points due to the demand for AI, and Intel has not really participated up until now. Now we're actually seeing them participate in this. The reason why is the bottlenecks that have been created in the great AI compute buildout are CPUs and advanced packaging. If before the constraints, the bottlenecks were around the GPU and the TPU and the Broadcom AMD and video chips and memory chips, now we also need CPUs and let's not forget until it's still the leading provider of CPU chips.

And this is the quarter where this is going to start showing up for them. It showed up in the upside to numbers and it showed up in much higher gross margins as they're able to charge more for these CPUs. And as Christina was reporting, even take some out of the trash and sell those. That tells you how desperate hyperscalers are now for CPUs. So what is the key question with the stock having done what it's done from here on out? In other words, is it about the duration of this type of scarcity, this log jam? Is it about them just winning market share?

Is the whole pie getting bigger? Yeah, there's still a lot of execution ahead. So let's start with the CPUs. The CPU market again, we said they're in the lead, but they've been losing their lead. They've been losing share for a while to AMD and to ARM technology. Nvidia has said they're going to start selling CPU-only solutions, which they never did before. Arm said they're going to start actually making the CPUs, not just the intellectual property behind that. So Intel has to continue to execute. The great data center build out has to continue. So all those things have to happen. And then Intel still has a lot of execution catching up on the foundry side.

Christina's been talking about that a lot up today, which is they still lose a lot of money actually making the chips. And unless they have big customers for the next node, the 14A node, there's very little reason to think that they'll stop losing money there. Just to put it in context, TSMC, the company that makes most of the chips, has 50% operating margins. Intel in its foundry business has 50% negative margins. So Intel has a long way to catch up, has to make sure TerraFab ramps up quickly, has to make sure that other customers come to that note. There's still a lot of execution ahead, but they're just at the right place at the right time with CPUs, with advanced packaging. And let's not forget, the only major FAB based in the U.S., which makes them much more

valuable to all of their potential customers. I mean, I know you're not going to, you know, pivot on this on the fly, Gil, but were you still carrying a $45 price target? How are we supposed to value this business right now? Because as much as the guidance is a massive beat, and it still remains a relatively small piece if you look at revenue compared to the biggest competitor. So maybe that means people are willing to believe there's that much more runway. Well, without taking away the credit from the very positive result they just reported, I do want to go back to all those risks and say that there's a lot of other chip companies with not nearly as many risks that are trading in a much lower multiple, right? Intel, as of after market is probably trading it 30 times the product sales, which is to say

even if you eliminate all the losses on the fab business, they're still very expensive compared to Nvidia and Broadcom and certainly the memory companies who have been executing well, who are already benefiting from the buildout. So there's a lot of ifs on the Intel story, a lot less on other semi-companies. And in terms of the capital intensity of the business at this point, I mean, how does it compare to those others that you think, you know, more attractively valued? So let's not forget, Nvidia, Broadcom, AMD, Fabless. They don't have to make their own chips.

They have a lot less capex that they need. Intel has to invest a lot. Their balance sheet has gotten stronger, but they also just bought a facility in Ireland. So they don't have that much room and they still need to, invest a lot in order to ramp up this capacity. But again, the good news is there seems to be a market for everything they're making. So as long as they line up customers for their next node, they'll be fine. But they are a much more capital-intensive businesses than most of the chip companies. And TSM, by far the main competitor on the manufacturing side, on the fab side, is a fantastically

efficient company with 75% gross margins and a long track record of executing. So, Again, Intel has to invest a lot just to try to get better to try to eliminate those losses on the fab side. And as long as that's the case, there's a decent amount of risk. Yeah, all right. Still something to prove. The shares up almost 14 percent in response to those numbers after hours. Gil Luria, thank you very much. Thank you.

All right. Despite today's poll back, the market's been remarkably resilient, repeatedly shaking off around war headlines and continuing to hit fresh highs, all as earning season kicks into high gear. So what's driving this tape? What matters most from here? With us now to share their thoughts, Steve Sosnik, Chief Strategist at Interactive Brokers and Cameron Dawson, New Edge Wealth, Chief Investment Officer. Welcome to you both. Thanks for coming by. You know, Cameron, it felt like today was a slight microcosm of the last few weeks. You did get this intraday pullback, 1.2% drop in a flash in the S&P 500, and then pretty much narrowed semis leading. The conviction in the growth parts of this market

are saving it at the moment. Yeah, I think that the key word there is narrow is that this market continues to get narrower and narrow. And once it was a story of all Mag 7 doing well, now it's really just a story of semiconductors doing well. And to your earlier questions, it is a question about how long these last. We are having the most cyclical sector in the world being semiconductors experiencing supernormal growth. The socks will deliver 100% earnings growth this year. The question is, how do you value that? We are now trading at about a 22 times valuation for the semiconductor sector.

The peak was 28 times back a few months ago. And so the real question is how the market digest this supernormal growth and if it thinks it can actually continue. And I guess, Steve, you know, the dynamics of a correction and a comeback from a correction are somewhat familiar. But there's been some extremes in this instance. And you guys have isolated those in terms of the speed and persistence of the rally. And the fact that it came right back to all-time highs. Well, we didn't even have a correction really much. Not technically.

You know, NASDAQ barely made it 10%. S&P made about 9% from its highs. So this wasn't, the interesting thing is when we've had moves of this nature, they've almost always come at the emerging end of a bare market. And it's because of some change in monetary and or fiscal policy. So I went back. I found the three instances. This is the third time we've had three weeks in a row of 3% runs in the S&P.

500. 1982 when Volker stopped fighting inflation and 2020 when there was massive QE and massive fiscal stimulus. This was just basically on hopes that the war was ending. And then, you know, Sox, 17 straight up days today. This is 42% at least when I looked at noon, so it may be a little higher. 42% rally in basically like less than a month. And there is no precedent for this. The longest before ever was like nine that I could find.

And these didn't even occur in the internet bubble. At least the internet bubble, you had 3% rallies, three weeks in a row, more than once in NASDA in the NDX. Sox, this is completely off the chart, literally off the charts. I guess the question, Cameron, is whether we read that as sort of everybody overplaying the hand that they're confident in right here in terms of the AI trade and that it makes the market more fragile, or if it just shows you that, look, momentum's a real phenomenon. And, you know, you do have this, quote, re-risking process going on where a lot of investors felt under-exposed near the lows. Well, we have had a re-risking. If you look at Goldman Sachs, nonprofit will tech up 30% over the course of the last few weeks.

You saw the same thing with the most shorted names being up 30%. So that suggests not just a ravenous risk appetite, but some kind of positioning snapback. But the strength and concentrated nature of the market and semiconductors raises questions about 2027 earnings. because it's likely that you slow down from here. We do know that hyperscalor CAPEX will be likely cut in half in its growth rate in 27. And so as we get into the back half of this year, the market will be pricing in the 27 growth rate for EPS. And what's fascinating is that though we'll lose that massive tailwind from semiconductors, you still have an expectation of high teens' growth for the overall S&P 500 for 27.

So that would suggest that maybe markets have to kind of recalibrate to a lower earnings number as we look out into next year. And the earnings, as much as people are taking comfort in the estimates going up on an index level, it is still kind of lumpy within it. It's super lumpy because if you look at the full year of 26, a third of the growth rate is coming from two names, Micron and Invita. So when Nvidia is 7.5% of the S&P 500, it's growing at 96% growth rate this year. That likely slows into next year. And so you lose that as a big contributor. So much for the, the broadening, at least on a fundamental basis. Hang on one second.

We do want to point out at the CBO. The staff and CBO families are ringing the closing bell at Cibor in Chicago. It ends the regular trading day or options, of course, on Take Your Children to Work Day. So, Steve, one thing I've been mentioning is that you have a lot of the noise around the war. Everyone knows, oh, geopolitical shocks, you're supposed to be buying opportunities. Wall Street likes nothing more than a narrative that says, gain. pain before game, right? We're going to have to get through this period.

It's going to be a little noisy, going to be a little messy. The macro environment's uncertain, but don't worry, the underlying fundamentals are okay. Yeah, I mean, I think that makes a lot of sense. Although when I talk to people, the questions I get are based on the person's generation. If you're been around a few cycles like I have,

and I've had dinner last night with a bunch of friends my age, who've been through the internet bubble, who've been through the global financial crisis, their first question is, what's going on? Why is everybody so incredibly bullish? When I'm with younger investors who came to light, certainly after the global financial crisis, but even in the post-COVID environment, every dip is a buying opportunity. You know, every nail, if you're a hammer, everything looks like a nail.

And so they race to do this, and nobody wants to miss out. And so I think that there is a lot of that disconnect. But I think the missing link here is you have a lot of, call them older folks, having to hold their nose and buy. You know, yeah, as Cameron was mentioned, the non-fiable stuff that rallied, let's call it like Avis budget, you know, up seven, that's kind of the flight to crap that you get in a very frothy market. But I do think you have to have institutional managers of all ages holding their nose

because FOMO is very real if you're an institutional portfolio manager. If you're not performing, you've got career risk. And I think the fact that this happened literally a year after a lot of people were caught wrong-footed in that environment is why we had. sort of the lack of a reaction in the first place and this immense push afterwards. I get that, and I certainly think you can see it in the rhythms of the market and the behavior. But Cameron, one thing that's interesting is for as much as we're talking about this market kind of didn't look back and it's raised ahead, it's only up like 3% since late October.

You look at the trailing returns over a number of periods, and it's not like at the index level, things have been so good for so long. We had a bear market in 22. We had an almost 20% drop last year. So I just wonder if what we're seeing as a market that is heedless of risk actually is just kind of doing its thing. I think that it is digesting a very fulsome multiple. After all, at the end of October, we got to trading at 23 times forward earnings, which was the peak valuation we got to back in 2020 when earnings were depressed. So you had record earnings with a near-record multiple. And I think the fact that the market has been effectively flat is us just digesting the fact that we were trading at an unsustainable. high multiple and raises the question, can you get back there in order to meet some of these

bigger price targets like 7,800 and 8,000 for the S&P? Yes, that's right. One of the bull lines right now is what we're not even back to the peak valuations. Who knows if we get there? Cameron Dawson, Steve Sosnik, thanks very much. Thanks, good to see you. All right, our oil, closing up 4%, but off its highs of the day, oil and stocks, closely watching any headlines on peace talks with Iran. We'll get the latest on today's moves. Next on closing bell overtime, live from the NASDAQ markets. Shares of Aramark moving higher today. This is a company you may be familiar with as they run concessions at sports stadiums and other commercial venues. But now, even the hot dog vendor is trying to get a piece of AI. It's launching a new platform to enter the AI data business saying it will provide housing, food, and transportation services during data center construction.

Company saying it already has one top global hyperscaler as a client. The stock up 2%. I guess the old coffee truck is not enough. these big construction sites. Now let's turn to oil, which was slightly higher today as the situation in the Strait of Hormuz remains unsettled. Pippa Stevens has the details for us. Pippa. Hey, Mike, Brent, getting as high as 10740 today after Israel's Channel 12 news reported that Iran's top negotiator has resigned from his role in the talks with the U.S. This is stoking some fears around the potential for ongoing negotiations. Meantime, U.S. Central Command, saying it's now redirected 33 vessels since the start of the blockade. But Kepler saying it's important. to distinguish between redirection and seizing. Only a few ships have been seized, with the firm

saying, at this point, it's a deterrence story rather than an enforcement story. And President Trump saying today on Truth Social that he has ordered the U.S. Navy to, quote, shoot and kill any boat that is putting mines in the strait of Hormuz. Axios reporting this afternoon that Iran has deployed more mines in the strait, although it is unclear if that was prior to the president's post. Now, Brent is now 22 percent above its Friday. day low. Gasoline futures hitting their highest level since July 22, with diesel futures getting back towards the $4 level. Mike? 1% above the Friday low in Brent. Interesting. Pippa, we're also expecting pricing tonight

for a nuclear IPO set to begin trading tomorrow. It'll be the first advanced nuclear company going to traditional IPO pass. So what do we know about that? So this is X energy. They're looking to raise as much as $814 million. They did price in the 16 to 19 per share range. giving it a valuation of about $7.5 billion. I spoke to some sources earlier today who said that the book was vastly oversubscribed, multiple times oversubscribed. And one source said that they expect the IPO to price high or significantly above the high end of its range. And this is really the first time that a sizable, advanced nuclear company has come to the market.

And the company has a lot of heavyweight backers, including partnerships with Amazon, Northwest Energy, and Dow Chemical. It also has received funding more than $1.5 billion from the likes of Jane Street, Ken Griffin from Citadel, Aries Management. And so a lot of the blue chip investors and the more generalist investors who might not be nuclear experts have indicated that they're interested in this because of that very strong management team, as well as that list of backers. But of course, you know, anything can happen with an IPO, Mike. So we'll see what happens here.

But there's been a lot of retail interest propelling these names. And so we'll see how they do when they price later. tonight. Yeah, no doubt. I'm sure it's definitely a little bit of a of a stampede. We'll see how it goes. Pippa, thank you. Coming up, the saga of Avis Budget taking a big turn today. We'll have the latest details and the impact of the oil price spike is starting to hit areas of the economy. Up next, we'll look at one sector already feeling the pinch. Overtown. We'll be right back. The bottom dropping out of Avis budget again today as the short squeeze which sent the stock soaring is now coming apart. Stock hit an intraday high of 847 yesterday, closed at 229 today. Back-to-back,

35 percent plus losses that leaves at 73 percent below yesterday's midday high. J.P. Morgan downgrading the stock to underweight, but raising its price target to 165. Now it's turned to oil's impact on the economy. The surge and cost of energy is starting to create a problem for home builders. Diana Oleg has that story for us in this week's property play. Diana. Well, Mike, the cost of both manufacturing, building products and transporting them has increased quickly. In its latest builder sentiment survey, the NHB reported 62% of builders saying suppliers have increased building material costs due to higher fuel prices, including gas and diesel. Energy costs make up about 4% of residential construction material input and service costs. 70% of builders in the survey reported challenges pricing homes given uncertainty about material costs.

and just about every product is getting hit. It's flooring from Mohawk, windows and doors from cornerstone, paint from Sherwin Williams, and gypsum or drywall from certainty. Pulte homes reported quarterly earnings this morning, and while CEO Ryan Marshall downplayed the effects of the war now, he did say if it continues, there will be real cost increases. But he added that they will not overreact to what he called the whipsawing of markets. For much, much more on oil and the builders, as well as, look at the recovery in biotech real estate. It is all in this week's free property play newsletter.

Go to it. CNBC.com forward slash property play. Mike? Diana, where do the builders stand in their ability to potentially try to recapture some of these cost increases through their own pricing? It would seem like maybe they can't necessarily share all those expenses. Well, but they're coming up against that affordability wall, right? We keep talking about how home prices are too high. The builders are trying to get the prices down. see prices come down in Pulte's earning statements for homes. But, you know, they also mentioned that they don't have the tariff issues as much now before. But does that offset the increase in the costs of building materials from the war? They've yet to see that come in. They're just expecting

that going forward. In the last quarter, they didn't really mention much about it. But all the builders reporting this week said they could see what they called pressure if this continues. So they're not going to be able to lower prices anymore if they continue to have these higher costs. Yeah, if this continues is the huge swing factor with everything coming to a job site by, you know, burning diesel fuel. So we'll see how it goes. Dan Oleg, thank you. Time now for CNBC News Update with Pippa Stevens. Hi, Pippa. Hi, Mike. The National Transportation Safety Board today released a preliminary report in the deadly crash on a LaGuardia runway in March, killing two pilots and injuring dozens in a collision with a fire truck. According to investigators,

air traffic controller recordings captured the controller telling the firefighting vehicle to stop moments after it was given permission to cross the runway, but the firefighters did not know who the warning was for. The Department of Agricultural today said it's relocating about 2,600 employees on the research and food safety staffs from Washington as part of a broad reorganization. Most USDA employees already live outside the D.C. area and the agency plans to move the current employees to five regional hubs in an effort to bring the workforce closer to farmers. And Italy today dismissed a proposal from a Trump official for the country to replace Iran in the upcoming World Cup. Iran has not withdrawn and says its team is preparing to play. Italy's finance minister called the proposal shameful that you need to deserve to go to the World Cup. Mike, back to you.

All right, Pipa, thank you. Well, we've got a news alert on Nike. The company announcing it's cutting approximately 1,400 jobs and global operations with the majority coming in technology. In a letter to employees, Nike says this is part of its. own win now action plan, saying it's not a new direction. It's part of the existing efforts that are already underway. Nike shares about flat under 45 in after hours trading. Up next, we'll get a check on some of the stocks making big moves after hours following their earnings. And we're going to talk to the CEO of Huntington Bank as that stock moves lower following its results. Closing Bell overtime.

Welcome back to Closing Bell overtime live from the NASDAQ market site. Stocks closing lower, down 179 points for the Dow, for a tenths of a percent loss for the S&P 500, still holding above the 7100 level. The NASDAQ lower by nearly 1 percent. Intel soaring after reporting results. The stock up some 17 percent after hours, adding to what was already a big gain this month. Earnings were 29 cents a share on an operating basis. Analysts were expecting only a penny. Revenue also better than expected.

Intel also raising revenue guidance for the current. quarter well above the current consensus. Now let's get to the bond market as yields move higher today. Rick Santelli joining us from Chicago. Hi, Rick. Hi, Mike. Indeed. You know, once again, we continue to shadowbox the oil market. And if you look at a 12-hour chart, it mean it was exact. If you look at when the high yield was in the treasury complex and the high pricing in the crude oil, it all happened right around 145 Eastern. And the reason that's so important is because as oil continues now to move up and get closer to 100. We see that 10-year yields, right now, if you look at a two-week chart, had the highest

intraday level reached since the 13th of April. The yield today, 4.36. And the reason that's so important is, if you look at the next chart, the market has been mostly sideways, but the ranges are getting bigger now. And most of the move really occurred right before the end of March. That 443 area closed, that was. as the high closeness conflict began. But that sideways activity, you can see the ranges are starting to get bigger

and the right side of that chart starting to move up a bit. Should that get above 435 tomorrow, I would look for some more selling, push yields towards that high yield close that we had right towards the end of March. And do remember that with the Fed meeting next week, many traders are starting to get a bit nervous. Look for tomorrow's close to potentially be very aggressive should we start to get above that 435 era.

Mike, back to you. Interesting trigger point there. Rick, thank you very much. While shares of Huntington Bank shares, reversing earlier losses after reporting first quarter results, while the company did beat help by higher fees, lower expenses, and deposit growth, its net interest income guidance came in at the lower end of the range. Joining me now for an exclusive interview is Huntington Bank Share's CEO, Steve Steiner. Steve, it's good to see you.

Thanks for coming on. You too, Mike. Thank you. So the story, of course, is about, you know, the business. business, what you're seeing in the quarter, this and next, but also, of course, you've been digesting a couple of sizable acquisitions. Where does all that stand in terms of integrating everything and kind of having it all working together for the remainder of the year? Well, we had two sizable bank acquisitions and then some business lines last year from

Janie and T.M. Capital at exactly year end. The business line, Janie and Capital, off to a phenomenal start. We had a record capital market's income. They contributed to that. In terms of the bank, we refer to these as partnerships. Veritex has gone very, very well. Malcolm Hollins set the tone right from the start that has been converted as of January. And so they're all in the same system. We're moving forward now with a great team of colleagues who've joined us from Veritex. And with Cadence, which closed February 1, Cadence is about $52 billion.

Again, Dan Rollins, the CEO, set a remarkable tone right from the state. start. We've got highly engaged colleagues. We're moving forward rapidly. In both cases, we're going to get the expense synergies. Cadence will convert and go live on June 22nd. And then we'll have everything on one system. And our colleagues aligned and we'll be able to start executing. We have a lot of product and other capabilities that we're offering to them, digital, et cetera, that will, I think, open up a great new revenue set of growth dynamics within the company. What are you looking for in terms of, loan growth looking ahead. I mean, there's been some chatter among some of the analysts that,

obviously, you know, organically speaking, not due to these acquisitions, that you guys were running, you know, pretty hot in terms of loan growth and wondering if that can continue. Well, we're peer leading, and we have been for several years, and we expect that to continue. We do see some beginnings of concern about what's going on in the Middle East and the larger impact. Your prior guest, Mike Santoli, was referencing that in his comments about the 10-year, for example. So we hope this gets resolved quickly, and if it does, we'll be back at or near the mid, if not high end of the range that we gave for the year. If it goes longer than that, then some customers may start deferring or even postponing indefinitely decisions to invest.

So economic activity looks good. The consumer generally, other than the low income in reasonably good shape. You saw that in the retail sales number. But things are a little tenuous right now. And hopefully it's going to get to a good conclusion this quarter. And what are you seeing in terms of the tone in the commercial lending market and the corporate side? Naturally, a ton of attention there in terms of some of the non-bank lending happening. But is that filtering through in any respect to your business?

Well, I think we're not a big non-bank lender. the private credit is not a big part of our portfolio of activity. Actually, I think it's going to provide opportunity for us on the margin. And so as we look forward, we've got great organic growth. We've had peer leading levels of growth now for a couple of years for the regional bank space. We had a good first quarter. We've got great momentum going to the second quarter, a nice pipeline. And I think that could strengthen if things settle down in the Middle East and get to a resolution.

Yeah, I guess we all hope for something like that. Steve, thanks very much. Appreciate the time. Steve, Steinb, Huntington Bank. All right, Intel shares surging after a blowout earnings report. Stock came into the print on pace for its best month, more than 50 years. Up next, Fast Money's Dan Nathan tells us how he's playing stock. Closing Bell Overtime. Be right back. Welcome back to Overtime. Let's get another look at Intel.

Those shares still moving much higher after its biggest revenue beat in over five years and a strong second quarter guidance, too, up 15.7%. Joining me now is fast money trader, Dan Nathan. So among other things, what this report seems to say is the scarcity in certain parts of the semi-food chain has reached in extreme proportions. They talked about, you know, taking old chips that they were going to junk and actually getting able to sell them. How do you think about this business right now?

It's transforming pretty quickly. Well, I think a lot's on the come here, right? So you just had this announcement that they're going to be participating in. the TerraFab, that is Tesla's gigafactory down in Austin. And I think the expectations there that this is going to help broaden out their manufacturing. And this is a company Intel that has not have a great track record in manufacturing, despite the fact they want to do it here, which is great. You know, you think about the scarcity of chips that you just mentioned.

You know, Nvidia took a stake in this company. Think about that. Invidia took a stake in this company. As did the U.S. government. As did the, which has been a great trade, by the way. I think it was like 20 and 24 bucks respectively, that sort of thing. So, you know, the fact that Nvidia was looking to help broaden out, you know, like, I guess access to chips that could help run these servers that go into the data centers

that train the models, right? It just shows you that this has been a multi-year thing. You know, Intel is still very dependent on PC chips. I think they get more than 60% of their sales from there. So if you look at these CPUs, not the GPUs, they're going to be used for inference, right? You go to your LLM, you type something in and you want to answer. It takes much less power, computing power, to do that. And then the other thing is if you think out, and I think one of the reasons why the stock is of 100% a month, is that we're hearing more and more about agents that are coming out from these models, right? And then agents is also kind of using inference for all intents and purposes. So, you know, CPU clusters, which is what Intel's providing, all of a sudden they are sending tens, if not hundreds of thousands of these things.

So there's a lot of moving parts here. This is not something I was optimistic going into the print. I just thought there was a lot discounted into the number. That's clearly not the case. But the guidance beat, up 10% revenues, the stock's up 15, 16%. That doesn't make a whole heck of a lot of sense. So to me, I suspect the stock probably fails tomorrow. It gives a lot of this back.

I was going to get to that because you also saw Texas Instruments up over 19% today on an earnings beat, granted. But it's almost like the market is kind of grabbing for any of the semis that haven't moved a ton. Yeah, and that's not like I was looking at this morning. I mean, 10% of their sales are going to data center. This is Texas Instrument. And the stock's up 20%. Like that just and breaking out to all-time highs. And if you look at the SMH that is obviously heavily concentrated in NVIDIA, Taiwan, semi, Broadcom, you know, this thing is up 60% in a month.

I mean, Mike, you were around in the markets in 1999. We saw this sort of, you know, irrational sort of behavior. You can't take the guidance that Intel just gave or Texan just gave and make an intelligent argument why these stocks need to be trading at all-time highs with this sort of fear, I guess. You're trying to rewrite the rules in terms of how much you pay for, peak earnings or, you know, high earnings, if not peak. We'll see. InVitya was down today, actually. It slipped back below 200 bucks down 1.4%. Dan, good see you. Thanks, Michael. See you a bit. All right, SpaceX, OpenAI, and Anthropica are just three of this year's highly anticipated IPOs. Up next, we're going to discuss how those massive companies going public

could impact the broader market. As America celebrates its 250th anniversary, CNBC spotlights the companies that rose with the nation. and continue to shape its future. I'm Craig Zildgen, owner and president of the Avidas Ildgen Company, a manufacturer of musical instruments. The company was originally started in 1623 in Istanbul by Avidus Ildjan Ildin I first. Avidus was an alchemist, and what he created was a unique alloy that produced beautiful, clear-sounding symbols. Then in 1929, my grandfather, Avidus III, relocated the company here in America.

We've been proudly made in America ever since. America is the largest market for musical instruments, and the birth of jazz in America provided an opportunity. Being in America gave us access to these artists. They could come into the factory, and we could make new sounds together. My grandfather was unstoppable. His resilience and deep passion led us through the Depression, and World War II, where we had the war production board

putting metal on allocation. When Ringo Starr, the Beatles, performed on the Ed Sullivan show in the 1960s, overnight everyone wanted to be a drummer. That created a back order of 90,000 symbols. It made Zildgen the symbol of choice for rock and roll drummers. Being a multi-generational company, company. We're focused on stewardship and the legacy of the brand. What makes a family business overall so successful is the long-term perspective that is unique to private companies. I think it's

exciting to see that next generation of Ziljan family members, learning the business and carrying on the core family values that have been passed down for generations. We're excited to see where the music takes us. SpaceX, reportedly in the middle of hosting analysts this week, as a prepares to go public later this year in what could be the world's largest ever public offering. Given unprecedented size and open AI and anthropic likely following suit quickly after, are markets prepared to digest these monster IPOs? Joining us now is Rodney Comagy's Vanguard Capital Management and head of global equity there. And it's really great to get your perspective on this, Roddy.

I mean, obviously, you know, these are deep markets. We can absorb a lot of supply. but we're talking about at least $3 trillion, at least notional face value market cap. That's going to want to get into our indexes onto our markets. How are you thinking about that as somebody who has to kind of manage the way that some of the biggest index funds are handled? Well, Mike, first of all, thank you for having us. It's an exciting time for the market with three of the biggest IPOs in U.S. history lined up to come to the market. But I think we have to keep in mind that as these IPOs come to the market,

they're going to have a relatively small amount of free float. I mean, what we've heard the talk is SpaceX will only bring about 5% of the company to the IPO market. And if it's a trillion-dollar company, that's only $50 billion. That's actually not that much capacity. Now, what usually happens with IPOs over time is they'll release more shares. So it'll take a number of years until, you know, the entire company free floats, if ever, depending on whether the insiders continue to hold it or not.

So, again, I think we have to think about it as a $50 billion index inclusion, not a trillion-dollar index inclusion for market absorption purposes. Yes, of course. That is a good reminder. Just to be clear for folks out there, things like the S&P 500 only weights companies based on the amount of free-floating shares that they have out there. Obviously, privately held shares are not counted in the weight. That being said, there's been a lot of talk and maybe some preliminary work done by SpaceX and others trying to perhaps. perhaps speed their inclusion into some indexes, whether that means they don't have to be seasoned and trade on the market for a certain amount of time.

Who knows what it means for the profitability standard? So is that something that you think makes sense? Because I do know if you own an index fund or run an index fund, you do want it to be representative of the corporate sector in general. Yeah, Mike, our Vanguard's best practices in this space are IPOs should be included in the index almost immediately within a few days after they list. And it's true that legacy index rules really thought about small free float as a reason to exclude them. There wasn't enough shares available, but that was when we were talking $100 million IPO, not $1 trillion.

And a $50 billion available traded set, these stocks should be brought into the index as soon as possible. And you're seeing index providers change their rules, update them to match the modern stocks that are coming to the market. And we think that's a really good thing. Vanguard's best practice in the space for index providers is get them in. They're part of the market. Be a part of the investor's return. Makes sense. And again, just for folks to benchmark it.

I mean, the S&P 500 is, I guess, pushing like $60 trillion in market cap or so at the moment. What about the notion of allowing index funds to sort of buy directly once the lockup expirations occur? In other words, to make it a more efficient way of these companies, increasing. their float into the index funds? Again, we are very much in favor of that. We would like as people bring their shares to the market, the shares available in the available shares of the free float increase,

and therefore the index funds buy them right away. In fact, most of the index providers today, when secondary offerings are brought to the market, now typically they were done by the company, we include them right away. The longest we really wait is a quarter to bring them into the index. So again, you'll see maybe a little bit of lag between,

you know, lockup periods and index inclusion, but in some cases, if the blocks are large enough, they'll be brought right into the index. You know, back in the day when Facebook, you know, was unlocking shares and Mark Zuckerberg was selling some of his shares, we saw those included right at the quarter end. At the same time, they were, you know, bringing those shares in the market. We think that's a really good practice for index funds and really for investors. Yeah, does reduce the friction, no doubt about it. Rodney Comergeese of Vanguard, we've got to leave it there.

appreciate your perspective today. Thank you. That's going to do it for overtime. Fast money with Joe Kernan begins right after this quick break.