Plus: Nintendo projects softer year ahead and lower Switch 2 sales. And shares of cloud infrastructure company Akamai jump. Julie Chang hosts.
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[00:00:31] [SPEAKER_01] Here's your afternoon TNB Tech Minute for Friday, May 8th. I'm Julie Chang for The Wall Street Journal. We exclusively report that Apple and Intel have reached a preliminary agreement for Intel to manufacture some chips for Apple devices. People familiar with the matter say the deal follows more than a year of intensive talks, which were first reported by Bloomberg. While it remains unclear which specific products the chips are for, the move helps Apple diversify beyond its primary supplier,
[00:00:59] [SPEAKER_01] TSMC. Representatives for both companies declined to comment. The Trump administration played a key role in making the deal happen. The administration last summer struck a deal to convert nearly $9 billion in federal grants into Intel stock, giving the U.S. government a 10% stake in the chipmaker. Nintendo projected a softer year ahead, despite reporting strong annual earnings. For the 12 months ended March, the Japanese video game maker's net profit rose
[00:01:28] [SPEAKER_01] 52% to about $2.7 billion, beating analyst estimates. For the current fiscal year, Nintendo projected revenue would drop 11% and net profit would fall 27%. The company said it expects to sell 16.5 million Switch 2 consoles. That's down from almost 20 million units sold the previous fiscal year.
[00:01:51] [SPEAKER_01] The company has been trying to diversify its revenue streams beyond video games. It's expanded into movies, theme parks, and other forms of entertainment by leveraging its popular characters and game titles. And Akamai's stock closed up over 26%, leading the S&P 500.
[00:02:10] [SPEAKER_01] Akamai is a cloud infrastructure and cybersecurity company. The company said it had inked a $1.8 billion deal with a, quote, leading frontier model provider to provide cloud infrastructure services. Revenue in Akamai's cloud infrastructure business jumped 40% to $95 million in the first quarter of the year, per the company yesterday.
[00:02:32] [SPEAKER_01] Shares of the company are recovering from a sharp sell-off in April on investor concerns that a new offering from Anthropic could hurt demand for Akamai services. And that's your TNB Tech Minute. Check back Monday for another Quick Tech Update.
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