WEBVTT - TSMC Beat; United and HPE Decline; Salesforce Guidance

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel and Valerie As.

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<v Speaker 3>If we needed more signs that the AI trade still

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<v Speaker 3>has legs, how about these results from Taiwan's Semiconductor.

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<v Speaker 1>Good morning, Hey, good morning, Let's talk about the AI

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<v Speaker 1>tread yet again. Huh it doesn't stop TSMC out of

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<v Speaker 1>the beat. This morning, the world's largest chip manufacturer hiked

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<v Speaker 1>its twenty twenty five revenue projection for the second time

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<v Speaker 1>this year to the mid thirty percent range.

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<v Speaker 4>It was all boosted by AI chip demand.

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<v Speaker 1>TSMC also reported a thirty nine percent surgeon profit and

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<v Speaker 1>just shy of fifteen billion dollars in net income for

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<v Speaker 1>the quarter. The shares are rising one point six percent,

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<v Speaker 1>the eighty listed in the US art in pre market

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<v Speaker 1>trading higher, also lifting the broader a tech space to

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<v Speaker 1>Navidia up one point three percent. Off the back of this,

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<v Speaker 1>the CEO of TSMC is saying they are a speeding

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<v Speaker 1>up US capacity expansion, and also noted their conviction in

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<v Speaker 1>the AI mega trend is strengthening.

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<v Speaker 3>And we also got earnings this morning outside AI from

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<v Speaker 3>United Airlines. This looks like a pretty positive story.

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<v Speaker 1>You know, it did look like a pretty positive story

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<v Speaker 1>to me too.

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<v Speaker 4>But the shares are trading lower this morning.

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<v Speaker 1>United air is dropping one point three percent in pre market.

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<v Speaker 1>They did report resilient demand fueled by its premium passenger class,

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<v Speaker 1>and the airline forecasted adjusted earnings per share that was

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<v Speaker 1>decently above estimates. However, some analysts reporting to the fact

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<v Speaker 1>that operating revenue for the quarter fell just shy of

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<v Speaker 1>street expectations, and Bloomberg Intelligence notes their sign of saturation,

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<v Speaker 1>especially when it comes to the premium seats.

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<v Speaker 4>That it sells.

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<v Speaker 1>But look, the airline industry has done decently well since

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<v Speaker 1>the Delta beat last Wednesday. So you could also just

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<v Speaker 1>tag the fact that United Airline is up some ten

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<v Speaker 1>percent in the last ten sessions.

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<v Speaker 3>Okay, so a modest decline in the pre market for

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<v Speaker 3>United Airlines. But we got to talk about the biggest

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<v Speaker 3>downside mover this morning, what is going on with Hewlett

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<v Speaker 3>Packard Enterprise.

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<v Speaker 1>Some evidence of margin compression problems. Hewlett Packard Enterprises down

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<v Speaker 1>nine point seven percent. This is the one of the

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<v Speaker 1>world's largest makers of computing equipment. It issued a full

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<v Speaker 1>year forecast for profit and cash flow that fell short

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<v Speaker 1>of expectations, even though it did see to increase demand

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<v Speaker 1>for high powered servers, which are used for AI workloads.

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<v Speaker 4>HP is dealing with tighter margins.

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<v Speaker 1>In part to building those servers, it takes expensive AI chips,

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<v Speaker 1>and those have made the machines less profitable and the

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<v Speaker 1>business margins shrinking slightly. So HPE suffering near ten percent

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<v Speaker 1>declines this morning on the back of this disappointment.

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<v Speaker 3>Well, it looks like a much more positive earning story

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<v Speaker 3>for another big tech names, sales Force, so.

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<v Speaker 4>This also has another AI theme through it.

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<v Speaker 1>They projected double digit revenue growth and also announced a

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<v Speaker 1>buyback of seven billion dollars. The shares are trading higher,

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<v Speaker 1>up five and a quarter percent, but the stock really

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<v Speaker 1>has been battered this year.

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<v Speaker 4>It's down twenty nine percent year to date.

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<v Speaker 1>Investors have been concerned that Salesforce's customers are spending their

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<v Speaker 1>budgets on other AI tools from startups rather than traditional

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<v Speaker 1>vendors like Salesforce, but Today's guidance from the customer management

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<v Speaker 1>software company could potentially ease some of those concerns, and

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<v Speaker 1>that's why we're seeing the positive move in the market

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<v Speaker 1>this morning.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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