Nvidia, Better Home & Finance, TUI, Kingfisher and Raspberry Pi

Shares in Nvidia (NVDA) rose nearly 4% on Monday, after the chipmaker announced plans to invest up to $100bn (£73.95bn) in ChatGPT developer OpenAI.

The investment is part of an AI infrastructure partnership between the two companies for multi-gigawatt data centres powered by millions of Nvidia graphics processing units (GPUs).

Under the deal, OpenAI will deploy at least 10 gigawatts of Nvidia systems for its AI infrastructure, including the chipmaker's Vera Rubin platform. Nvidia plans to invest up to $100bn in OpenAI progressively as each gigawatt is deployed.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “This makes Nvidia’s recent $5bn investment in Intel look like pocket change. The first gigawatt is slated for the second half of 2026, powered by the new Vera Rubin platform. For Nvidia, the prize is huge – every gigawatt of AI data centre capacity is worth about $50bn in revenue, meaning this project could be worth as much as $500bn.

“This move cements Nvidia’s position as the undisputed king of AI at a time when custom chips from hyperscalers and startups had started to nibble at its dominance.

“By locking in OpenAI as a strategic partner and co-optimising hardware and software roadmaps, Nvidia is ensuring its GPUs remain the backbone of next-gen AI infrastructure.”

Shares in New York-based mortgage lender Better Home & Finance (BETR) soared nearly 47% on Monday and were up a further 36% in pre-market trading on Tuesday morning.

The jump in shares comes after activist investor Eric Jackson called the company “the Shopify of mortgages” in a post on X.

It was Jackson's bullish call on real estate company Opendoor Technologies (OPEN) in July that helped drive a rally in its shares.

In his post on X on Monday, Jackson said that Better Home & Finance was “rebuilding a $15T industry from scratch with AI”.

In Germany, shares in TUI (TUI1.DE) were up nearly 3% on Tuesday after the travel company issued a solid trading update.

TUI said that positive summer trading momentum in its holiday experiences business and steady demand in its markets and airlines business positioned it to reaffirm its raised guidance for the 2025 fiscal year of expecting 9% to 11% growth in earnings before interest and tax.

The company said it had also seen a positive start to winter trading, providing confidence heading into the 2026 fiscal year.

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Mark Crouch, a market analyst for eToro, said: “Despite a turbulent macro backdrop, TUI’s latest trading update strikes a notably upbeat tone. The group remains on track to deliver its upgraded FY25 earnings target, with robust summer bookings suggesting that price-conscious consumers still prioritise sun and certainty over inflation anxiety and another summer in the garden.

“TUI’s integrated model of bundling flights, hotels and transfers continues to offer resilience, insulating it from the volatility that often clips the wings of standalone carriers,” he said. “Winter bookings are already ramping up, another encouraging sign that demand is holding firm.”

On the London market, Kingfisher (KGF.L) was the biggest riser on the FTSE 100 (^FTSE) on Tuesday morning, with shares jumping 18%.

The B&Q-owner said on Tuesday that it was upgrading its full-year guidance and accelerating its share buyback programme, on the back of a strong first half performance.

Kingfisher reported nearly 2% growth in underlying like-for-like sales to £6.81bn ($9.21bn) and a 10% increase in adjusted pre-tax profit to £368m.

For the year, the DIY retail company said it was now targeting the upper end of profit before tax guidance of £480m to £540m. In addition, Kingfisher said it expected to complete its current £300m share buyback by March 2026.

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Victoria Scholar, head of investment at Interactive Investor, said this was an “extremely encouraging update for investors in Kingfisher”.

“However, there are still notable headwinds including cost pressures from wage inflation and higher NICs [national insurance contributions] this year as well as political and consumer sentiment uncertainty and UK labour market weakness ahead of the autumn budget,” she said.

Scholar said that the surge in shares on Tuesday underscored the “significant positive shift in sentiment among investors towards the stock in light of today’s update. Until yesterday’s close the stock was down 23% over the last year with today’s trade helping to erase much of those losses.”

On the FTSE 250 (^FTMC), shares in Raspberry Pi (RPI.L) fell more than 5% on Tuesday morning, as the tech company reported falling revenue and profits in the first half.

Raspberry Pi makes small, more affordable computers for businesses, as well as for home use, having been originally developed to help with teaching coding. The company's listing on the London Stock Exchange in June last year was considered a major win for the UK market, which is hungry for more tech company flotations.

In first-half results, published on Tuesday, Raspberry Pi posted revenue of $135.5m, down 6% compared to the same period last year, while profit before tax slid 43% to $6.2m.

Robinhood UK (HOOD) lead analyst Dan Lane said: “Flat volumes and a huge fall in profits compared with last year don’t paint the greatest picture for one of the UK’s most notable tech hopes. That’s against a tough comparator though, and there’s a lot more to feel positive about today.”

“DRAM (dynamic random-access memory) supply and pricing has become a wider concern but the wells are full at Raspberry Pi – enough to hit this year’s sales goals,” he said.

“If volumes lift as expected, the second half of the year should contribute a lot more meaningfully to profits. Cash levels are healthy and gross margin is holding up – with cost pressures potentially down the line in the DRAM world, management will need to try to buoy operating margins too.”

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