WEBVTT - Nvidia Quells AI Fears; Rival Chipmakers Rally; Cloud Computing Receives Boost

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market harnessing the power of Bloomberg Data.

0:00:16.440 --> 0:00:18.360
<v Speaker 3>Let's take a look at some stocks on the move today.

0:00:18.560 --> 0:00:22.079
<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel Good and

0:00:22.239 --> 0:00:22.960
<v Speaker 3>Video Morning.

0:00:23.040 --> 0:00:26.800
<v Speaker 1>Valerie Good in Video Morning, Nathan, and it is a

0:00:26.880 --> 0:00:29.880
<v Speaker 1>bright and Sunday morning at that and Video shares up

0:00:29.880 --> 0:00:33.000
<v Speaker 1>nearly five percent in the pre market trade. This is

0:00:33.040 --> 0:00:35.280
<v Speaker 1>all down to their beat in their third quarter revenue

0:00:35.320 --> 0:00:39.760
<v Speaker 1>in a bullish guidance on on future earnings, lifting not

0:00:39.920 --> 0:00:43.000
<v Speaker 1>just Nvidia in the Nasdaq, but global equities with it.

0:00:43.040 --> 0:00:45.920
<v Speaker 1>The chip maker guided for next quarter revenue to be

0:00:46.080 --> 0:00:50.040
<v Speaker 1>sixty five billion dollars, above estimates of sixty two and

0:00:50.080 --> 0:00:53.720
<v Speaker 1>they also said that the half a trillion revenue bonanza

0:00:53.800 --> 0:00:56.520
<v Speaker 1>that they expected in the coming quarters may be even

0:00:56.560 --> 0:01:00.840
<v Speaker 1>bigger than anticipated. Their data center revenue also came in

0:01:00.880 --> 0:01:05.080
<v Speaker 1>strong for the previous quarter, and Jensen Hwang told Bloomberg

0:01:05.160 --> 0:01:08.280
<v Speaker 1>the CEO that the AI chip sales of their Blackwell

0:01:08.319 --> 0:01:11.320
<v Speaker 1>model are off the charts now. Some skeptics are weighing

0:01:11.360 --> 0:01:13.640
<v Speaker 1>in on the AI bubble debate, arguing that.

0:01:13.760 --> 0:01:15.840
<v Speaker 4>Just because Nvidia AI.

0:01:15.640 --> 0:01:18.039
<v Speaker 1>Chips are in such demand doesn't mean the return on

0:01:18.160 --> 0:01:20.399
<v Speaker 1>investment from them is going to be higher. That's really

0:01:20.680 --> 0:01:23.880
<v Speaker 1>at the crux of the text valuations at the moment

0:01:23.920 --> 0:01:26.680
<v Speaker 1>whether this massive investment in AI data centers and in

0:01:26.800 --> 0:01:29.839
<v Speaker 1>Vidia chips is going to pay off. But regardless, fears

0:01:29.880 --> 0:01:32.080
<v Speaker 1>are receiving about an AI bubble and risks on a

0:01:32.120 --> 0:01:32.839
<v Speaker 1>front foot today.

0:01:33.160 --> 0:01:37.040
<v Speaker 3>All right, So what's the ripple effect across the AI sector.

0:01:37.280 --> 0:01:40.200
<v Speaker 1>It's pretty decent across even the rival chip makers to

0:01:40.360 --> 0:01:43.920
<v Speaker 1>Nvidia's dominance in the sophisticated AI chip space. We're seeing

0:01:43.959 --> 0:01:47.840
<v Speaker 1>the likes of AMD, their main rival, up five sorry,

0:01:47.840 --> 0:01:51.600
<v Speaker 1>four point five percent, Broadcom up three percent, in Intel

0:01:51.840 --> 0:01:53.280
<v Speaker 1>up one point six percent.

0:01:53.560 --> 0:01:55.600
<v Speaker 4>We're also seeing a decent a boost.

0:01:55.280 --> 0:01:58.800
<v Speaker 1>When it comes to as cloud computing services providers, the

0:01:58.920 --> 0:02:01.680
<v Speaker 1>likes of Core weave or up nearly eight percent, an

0:02:01.760 --> 0:02:04.440
<v Speaker 1>Oracle up nearly three So it's a broad based move

0:02:04.760 --> 0:02:06.720
<v Speaker 1>across the tech industry this morning.

0:02:06.680 --> 0:02:09.960
<v Speaker 3>But not for every tech name. Val what's going on

0:02:10.000 --> 0:02:11.720
<v Speaker 3>with Palo Alto Networks.

0:02:11.600 --> 0:02:12.880
<v Speaker 4>Follow Alto Networks.

0:02:13.080 --> 0:02:15.840
<v Speaker 1>Their shares are in the red, down three point seven percent.

0:02:16.200 --> 0:02:19.520
<v Speaker 1>This is the network security software company. They came out

0:02:19.520 --> 0:02:22.880
<v Speaker 1>with earnings that were actually pretty decent beat expectations, but

0:02:22.960 --> 0:02:27.320
<v Speaker 1>the company agreed to acquire Chronosphere to enhance its AI

0:02:27.520 --> 0:02:31.480
<v Speaker 1>enabled cybersecurity offerings and paying just north of three point

0:02:31.520 --> 0:02:34.000
<v Speaker 1>three billion dollars for it. So perhaps the market viewing

0:02:34.040 --> 0:02:36.640
<v Speaker 1>this acquisition with a bit of doubt given the price

0:02:36.680 --> 0:02:37.760
<v Speaker 1>tag for Palo Alto.

0:02:38.160 --> 0:02:43.080
<v Speaker 3>Speaking of acquisition news, Valerie, Warner Brothers Discovery is going

0:02:43.160 --> 0:02:44.280
<v Speaker 3>to be one to watch today.

0:02:44.480 --> 0:02:47.240
<v Speaker 1>Yes, so I do want to put this on everyone's radar.

0:02:47.320 --> 0:02:49.720
<v Speaker 1>Warner Brothers Discovery. It's up just eight tens of one

0:02:49.760 --> 0:02:52.920
<v Speaker 1>percent so far in pre market, but bids are due

0:02:53.040 --> 0:02:56.360
<v Speaker 1>today for the company after Warner Brothers put itself up

0:02:56.360 --> 0:02:59.400
<v Speaker 1>for sale last month, following interests from Netflix as well

0:02:59.440 --> 0:03:03.480
<v Speaker 1>as Paramount, Skydance and Comcast. Now sources have told us

0:03:03.480 --> 0:03:06.880
<v Speaker 1>here at Bloomberg that Netflix promised it would keep releasing

0:03:07.000 --> 0:03:10.520
<v Speaker 1>studio films in theaters if it is successful buying the company.

0:03:10.800 --> 0:03:13.920
<v Speaker 1>That is something that Warner brother has contractual agreements to

0:03:13.960 --> 0:03:17.320
<v Speaker 1>release movies and theaters, which Netflix would honor. So perhaps

0:03:17.320 --> 0:03:19.679
<v Speaker 1>the market may be coming to groups that maybe Netflix

0:03:19.919 --> 0:03:21.640
<v Speaker 1>could be the winner in today's bids.

0:03:22.680 --> 0:03:26.720
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:03:26.800 --> 0:03:29.359
<v Speaker 2>us throughout the day for the latest roundup of companies

0:03:29.440 --> 0:03:32.519
<v Speaker 2>making news on Wall Street and for the latest market

0:03:32.560 --> 0:03:37.000
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:37.120 --> 0:03:40.640
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:03:40.680 --> 0:03:42.200
<v Speaker 2>the Bloomberg Business app.