Before the Bell: Nvidia sparks a rally in chip stocks

After announcing a 5 billion dollar investment in rival Intel, Nvidia sent the entire chip sector soaring. Today, attention turns to the results of Brederode and FedEx.

Intel shares surged 22.8% yesterday after chip designer Nvidia revealed a 5 billion dollar investment in its competitor. Following SoftBank and the U.S. government, Nvidia has now also taken a position in the American chipmaker. The S&P 500 (+0.5%) hit a new record. In Europe, the Euro Stoxx 50 (+1.6%) gained ground as well. Chip equipment makers ASML (+7.7%), ASMI (+8.8%), and Besi (+7.9%) all rallied on the Intel news. Wolters Kluwer (+6%) was rewarded after reaffirming its 2025 outlook and accelerating its share buybacks. Meanwhile, the Bank of England kept interest rates unchanged, with high inflation making it difficult to cut rates in the U.K.

In Asia, Japan stood out. Japanese equities briefly dipped after the Bank of Japan kept its policy rate unchanged at 0.5%. The Japanese two-year yield climbed to its highest level since 2008. Today, the spotlight shifts to the meeting between Donald Trump and Chinese President Xi Jinping. Both leaders are set to discuss the future of TikTok and trade relations between their countries. In the Netherlands, food wholesaler Sligro is cutting its dividend.

Private equity drags Brederode into loss

Private equity is often hailed as the holy grail by some investors, based on the belief that the best deals aren’t found on public markets and that unlisted companies generate superior returns. Firms like Sofina and Brederode use their networks to access such deals. But this year, performance is faltering. Brederode reported a first-half loss of 141.7 million euro, largely due to its private equity portfolio, which fell 164.7 million euro into the red. The culprit: a weaker U.S. dollar, which lost 14% against the euro in the first half. Portfolio gains weren’t enough to offset currency losses. Still, Brederode remains a high-quality company, with stakes in listed names like Alphabet that have since rebounded in the third quarter, though this isn’t yet visible in the accounts. At the end of June, net asset value per share stood at 135.16 euro. Investors can buy the stock today at a 20% discount to NAV—an attractive foundation for a portfolio.

Certainty deserves a higher share price

One billion dollar—that’s how much FedEx estimates U.S. trade tariffs will cost the shipping giant in 2026. The company has had to drastically reduce capacity between the U.S. and China, putting pressure on export volumes. Still, investors are likely to respond positively to FedEx’s latest quarterly report. Despite the headwinds, revenue rose 3% to 22.2 billion dollar, beating analyst expectations of 21.65 billion dollar. For the first time since tariffs hit, FedEx issued forward guidance. It now expects full-year revenue to rise 4% to 6%, well above the 1% growth analysts had forecast. Earnings per share are projected at 17.20 to 19 dollar. For investors, guidance itself is welcome news—because if there’s one thing markets can’t stand, it’s uncertainty. A higher opening is expected.

Did you know…

that Brederode completely missed the rally in Chinese equities? The firm sold its Chinese holdings in 2024, just before the “DeepSeek revival” began on the markets. Even top-tier companies sometimes miss the mark.

This article was translated from Dutch and was originally published on Spaarvarkens.be.