WEBVTT - Super Micro Rises, AMD tumble on Earnings

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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>I'm Carol Messer along with Tim Stanvik. Let's get to

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<v Speaker 3>you some stocks on the move this hour. And joining

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<v Speaker 3>us to do that is Bloomberg News Equities reporter and

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<v Speaker 3>deputy team leader for US Equities Carmen Rhin in case

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<v Speaker 3>she's in the house. We talked about what's going on

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<v Speaker 3>in the overall markets, but one stock really under pressure

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<v Speaker 3>is AMD today.

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<v Speaker 4>Yeah, and shares are off about sixteen percent right now.

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<v Speaker 4>This is on track to close at the lowest level

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<v Speaker 4>since well just January ninth, but to have the worst

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<v Speaker 4>day since May twenty seventeen. So a really significant job

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<v Speaker 4>here for AMD. So basically the company gave an underwhelming

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<v Speaker 4>sales forecast and that really increased concerns that investors have

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<v Speaker 4>had that is just not making enough progress on AI,

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<v Speaker 4>that it's not capturing enough of the billions of dollars

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<v Speaker 4>of capital expenditures that like hyperscalers have pledged to building

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<v Speaker 4>out AI infrastructure. I think the other thing that's really

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<v Speaker 4>important to point out here is that their forecast. So

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<v Speaker 4>they said first quarter sales would be about nine point

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<v Speaker 4>eight billion plus or minus three hundred million. That actually

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<v Speaker 4>was a little bit higher than the average analyst estimate.

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<v Speaker 4>I think she really goes to show how much the

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<v Speaker 4>beat and raise is important, but also beats need to

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<v Speaker 4>be very considerable. Investors are so quick to punish the

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<v Speaker 4>shares of companies that aren't like blowing expectations out.

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<v Speaker 1>Of the water. And the stock in twenty twenty five

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<v Speaker 1>was up seventy seven percent, down eighteen percent the year before,

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<v Speaker 1>but still, I mean, it's if you look at the

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<v Speaker 1>last few years this has been on just Iran, Yeah.

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<v Speaker 4>Huge beneficiary of AI.

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<v Speaker 3>Yeah, and was thirteen percent higher already in twenty twenty

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<v Speaker 3>six before this release. So exactly, you're right, Like, I mean,

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<v Speaker 3>the expectations are pretty high. All really listed in the

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<v Speaker 3>tech space. This was one we were waiting for earnings

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<v Speaker 3>last night. They came in late. Super micro Computer Yeah,

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<v Speaker 3>so SMCI is.

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<v Speaker 4>Really you know, taiale of two AI stocks. Right, So

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<v Speaker 4>shares are up thirteen percent right now, best day on

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<v Speaker 4>track for the best day since May twenty twenty five.

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<v Speaker 4>And really what we're seeing here is just the opposite

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<v Speaker 4>of AMD. You know, they gave a forecast that you know,

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<v Speaker 4>said they're doing well. They see more demand for AI,

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<v Speaker 4>especially as a maker of servers that house chips that

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<v Speaker 4>run these AI workloads. So investors really bidding shares up here.

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<v Speaker 4>I mean important to point out that the stock you know,

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<v Speaker 4>fell it's just been super valid all you know, up down.

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<v Speaker 4>If you look at the chart from last year, is

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<v Speaker 4>really all over the place, so well off highs.

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<v Speaker 3>I was going to say, check out our podcast because

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<v Speaker 3>I feel like we get schooled by our in a

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<v Speaker 3>good way, our Bloomberg intelligence folks who are like, here's

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<v Speaker 3>what this company does, and here's what the AI trade.

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<v Speaker 3>Because it's not all the same. It's not all maybe

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<v Speaker 3>the hyperscaler trade or play, but it's just kind of

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<v Speaker 3>the distinctions are important and you're seeing that play out,

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<v Speaker 3>and certainly the earnings really results in the action and

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<v Speaker 3>just kind of the overall AI trade.

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<v Speaker 1>So every company that you've given us thus far, every

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<v Speaker 1>stock you give us has been a double digit movie,

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<v Speaker 1>either to the upside or the downside. Same with our

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<v Speaker 1>next one.

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<v Speaker 4>I mean, yeah, let's take a look and another you know,

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<v Speaker 4>piece of the AI puzzle so we're looking at app

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<v Speaker 4>loven it's down fifteen percent right now. Also Unity Software,

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<v Speaker 4>so this is actually off lows of the day. It

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<v Speaker 4>was down about twelve percent. Now it's only two point

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<v Speaker 4>three percent lower, so a little bit of an uptick

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<v Speaker 4>there for them. So both of these companies have really

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<v Speaker 4>gotten caught in the software related sell off that we've seen,

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<v Speaker 4>you know, after Anthropic is really some new tools, it's

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<v Speaker 4>really just taken the air out of the tires and

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<v Speaker 4>software sector which was already under pressure. Sort of specifically

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<v Speaker 4>here there was a report from ad Exchanger about a

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<v Speaker 4>startup cloud using AI agents focusing on mobile ad monetizations

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<v Speaker 4>that very specifically hits app Lovin, and the stock was

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<v Speaker 4>actually also hit last week after Alphabet rolled out Project Genie,

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<v Speaker 4>which hit other video games sort of related stocks as well.

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

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