Key Takeaways
- Intel (INTC) CEO Lip-Bu Tan reports significant momentum in the company’s foundry business, with reports of a preliminary manufacturing deal with Apple (AAPL) driving shares to record highs.
- Oasis Management has proposed that Tokyo Steel (5423) pivot to data centers, urging the company to repurpose underused plants to unlock a projected 115% stock upside.
- Oil prices fell as much as 7% on optimism surrounding a potential deal between the U.S. and Iran, despite reports of Iranian commanders studying American flight patterns with Russian assistance.
- New Zealand faces a "stagflationary" squeeze, as April retail card spending dropped 1.3% while producer input prices surged 1.4% in the first quarter.
Intel’s Foundry Turnaround Gains Traction
Intel (INTC) CEO Lip-Bu Tan stated on Monday that the company’s foundry business is gaining significant momentum as customer interest continues to scale. The remarks follow reports that Intel has reached a preliminary agreement with Apple (AAPL) to manufacture chips, a move that would represent a major shift away from Taiwan Semiconductor Manufacturing Co. (TSMC).
The chipmaker's stock has surged nearly 240% year-to-date in 2026, recently hitting a fresh all-time high of $133. Analysts point to improving yields on Intel’s 18A process node and a $5 billion investment from Nvidia (NVDA) as critical factors in the company's recovery.
Oasis Management Pushes Tokyo Steel Toward Data Centers
Activist investor Oasis Management has launched a campaign against Tokyo Steel (5423), proposing the repurposing of underused steel plants into data centers. Oasis, which holds an 8.7% stake in the company, argues that the pivot is necessary to address "persistently low capital efficiency" and low plant utilization.
The proposal suggests that Tokyo Steel could increase its Return on Equity (ROE) from 2.9% to 8% within three years. Oasis is also urging shareholders to vote against the re-election of President Nara, citing a failure to implement effective capital allocation policies.
Geopolitical Tensions and the Oil Market
Oil prices slipped in early trading as Donald Trump signaled a pause in military strikes to pursue a diplomatic deal with Iran. Brent crude futures fell toward $101 a barrel, down from recent peaks of $126, as markets reacted to the possibility of reopening the Strait of Hormuz.
However, underlying tensions remain high. A New York Times report on Monday revealed that Iranian commanders have been studying the flight patterns of U.S. fighter jets and bombers. Intelligence assessments suggest that Russia may be assisting Iran in its military planning and the rebuilding of its drone arsenal via the Caspian Sea.
New Zealand Economic Pressure Mounts
Economic data from New Zealand paints a challenging picture, with retail card spending falling 1.3% in April. This decline suggests that high fuel costs and interest rates are severely curbing consumer discretionary spending.
Simultaneously, the Producer Price Index (PPI) for the first quarter showed a 1.4% rise in input costs, significantly outpacing the 0.8% rise in output prices. This gap indicates that New Zealand producers are absorbing higher costs, which may lead to further margin compression or delayed price hikes for consumers.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.