The developments in inflation and new financing in the artificial intelligence trade came as no surprise, sparking record action on Wall Street last week. The S&P 500 and Nasdaq both fell slightly on Friday, but managed to post their third straight winning week. The S&P 500 index rose above 7,800 for the first time in history during Thursday trading. It ended at a record-breaking time. The Dow Jones Industrial Average bucked this trend, falling nearly 0.6% for the week. Let’s take a closer look at what moved the market. Slowing inflation gives Fed room to wait Two closely watched inflation reports eased concerns that the Fed will need to raise rates at its September meeting, fueling market gains this week. The consumer price index on Wednesday showed a 0.1% rise in July, bringing annual inflation down to 3.4%, following last week’s weaker-than-expected jobs report. Both were in line with expectations. Jim called the report “very benign.” A day later, the producer price index was unchanged for the month, slower than the 0.2% rise economists had expected. On an annual basis, the overall PPI increased by 4.7%. Taken together, these reports provide further evidence that inflation is moderating, although it remains above the Fed’s 2% target. U.S. Treasury yields fell as traders backtracked on their expectations for a September interest rate hike. By the end of the week, the market had a 67% chance that the Fed would keep rates unchanged, up from 55% the previous week, according to the CME Fed Watch tool. Intel’s $20 billion bet on the future of AI Intel’s big stock sale initially spooked investors, who ultimately saw the capital increase as another sign of management’s confidence in the company’s AI opportunities. The company announced plans on Monday to sell $15 billion in common stock, sending its stock price down 4%. Intel then increased its offer to $20 billion on Tuesday due to strong demand for the original contract. I took advantage of Monday’s weakness to buy more Intel stock. That’s because it continues to be Jim’s favorite way to perform AI augmentation. Building semiconductor manufacturing capacity is expensive, and CEO Lip Vu Tan is unlikely to raise this much money without confidence that customers will support the investment. The conviction gained further momentum when Wednesday’s regulatory filing revealed that Tan and one of his family members agreed to buy the shares in the offering for a combined $12 million. We want to see executives put their own money into the businesses they run, especially alongside fundraising. Jim also sees the offer as another sign that momentum is returning to the AI industry, giving him the confidence to initiate a position in memory maker Micron, which he recently added to his bullpen watchlist. Given Micron’s volatility, we started small and only bought 25 shares. Intel and Micron ended the week up about 1% and 11%, respectively. Nvidia Engages Wall Street in Building AI Nvidia announced it has partnered with six major asset managers in a $500 billion financing aimed at turning AI computing into an investable asset class. The chipmaker has signed deals with Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, KKR, and Club Holding Goldman Sachs to establish a financing platform for Nvidia customers. Jim called the initiative a “groundbreaking positive change.” (Goldman had a great week, as it was the catalyst for both the Nvidia effort and the Intel stock sale.) Skeptics question whether graphics processing units (GPUs) can support this kind of financing, as they have historically been viewed as a technology that rapidly depreciates in value. Nvidia argues that its GPUs should be treated as long-lived, revenue-producing infrastructure that can be funded by the cash flow they generate. CoreWeave’s results this week reinforced that case, with CEO Mike Intrator explaining that older Nvidia GPUs will last longer than some investors expected. That could make chips more attractive to lenders and provide a new major source of funding for building AI. We believe this is a recognition that computing has become a critical infrastructure for the AI economy. As Jim said this week, “The revolution is here.” Nvidia’s stock rose 0.5% for the week, while Goldman’s was flat. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. 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