1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,760 --> 00:00:18,919 Speaker 1: I'm Carol Masser along with Tim Stenevik. Let's get to 5 00:00:19,040 --> 00:00:21,920 Speaker 1: some stocks on the move of Bloomberg News. Equities reporter 6 00:00:21,960 --> 00:00:24,919 Speaker 1: and deputy team leader for US Equities Carmen Reinicky is 7 00:00:25,000 --> 00:00:28,440 Speaker 1: in the house. We're almost there. 8 00:00:29,400 --> 00:00:32,400 Speaker 3: Well are we Well, yeah, we're getting there. We're getting there. 9 00:00:32,920 --> 00:00:34,760 Speaker 1: Some big moves though, And one name that we are 10 00:00:34,760 --> 00:00:36,480 Speaker 1: talking about a lot today, we're going to talk about 11 00:00:36,479 --> 00:00:37,920 Speaker 1: it as well. 12 00:00:38,080 --> 00:00:41,960 Speaker 4: Yeah, so that's super micro Micro ticker SMCI. So we're 13 00:00:42,200 --> 00:00:44,879 Speaker 4: down thirty two percent right now. This is the most 14 00:00:45,240 --> 00:00:47,680 Speaker 4: sense sort of end of October with twenty twenty four, 15 00:00:48,640 --> 00:00:52,640 Speaker 4: so three individuals associated with the company were indicted by 16 00:00:52,640 --> 00:00:55,520 Speaker 4: the US Attorney's office. So this includes the co founder 17 00:00:55,760 --> 00:00:59,640 Speaker 4: who's charged with smuggling chips to China. So really significant 18 00:01:00,120 --> 00:01:03,000 Speaker 4: here for this company. H And I also like to 19 00:01:03,040 --> 00:01:05,039 Speaker 4: point out here, so super Micro has had a pretty 20 00:01:05,120 --> 00:01:10,800 Speaker 4: rough stretch of years. So this company was almost delisted 21 00:01:10,840 --> 00:01:12,960 Speaker 4: in twenty twenty four, and just at the beginning of 22 00:01:12,959 --> 00:01:15,160 Speaker 4: twenty twenty five that was sort of resolved and it's 23 00:01:15,200 --> 00:01:17,360 Speaker 4: stayed listed and it stayed apart or you know, it's 24 00:01:17,360 --> 00:01:18,959 Speaker 4: a part of the S and P five hundred. But 25 00:01:19,440 --> 00:01:22,319 Speaker 4: so you know, they've had some regulatory concerns over there 26 00:01:22,360 --> 00:01:24,840 Speaker 4: financials and now this so just a lot of I 27 00:01:24,840 --> 00:01:26,080 Speaker 4: think overhangs over the stock. 28 00:01:26,160 --> 00:01:26,920 Speaker 2: What do they do? 29 00:01:27,880 --> 00:01:31,320 Speaker 4: So they're server maker, okay, and they are associated with 30 00:01:31,400 --> 00:01:33,560 Speaker 4: in video as well, so they've gotten they've had they 31 00:01:33,600 --> 00:01:35,480 Speaker 4: had a big run up because of you know, the 32 00:01:35,520 --> 00:01:38,039 Speaker 4: AI trade, but then also you know, struggled with some 33 00:01:38,080 --> 00:01:40,360 Speaker 4: other issues that led to volatility. 34 00:01:40,400 --> 00:01:42,560 Speaker 1: I feel like we have talked so much over the 35 00:01:42,600 --> 00:01:45,400 Speaker 1: last couple of years on this company of it. 36 00:01:45,480 --> 00:01:50,600 Speaker 3: Look, I mean the biggest suppliers for super Micro including Video, Broadcom, Intel, Micron, 37 00:01:50,640 --> 00:01:53,120 Speaker 3: and Western Digital, and it is a big name. 38 00:01:53,160 --> 00:01:53,320 Speaker 2: You know. 39 00:01:54,360 --> 00:01:57,640 Speaker 3: According to the Bloomberg Terminal, more than fifty percent of 40 00:01:57,680 --> 00:02:02,200 Speaker 3: what SMCI spends goes to in video. But a lot 41 00:02:02,240 --> 00:02:03,680 Speaker 3: of people spend a lot of money within video. 42 00:02:03,800 --> 00:02:06,760 Speaker 1: Yeah no, yeah, those are big numbers all around me. 43 00:02:06,960 --> 00:02:08,400 Speaker 3: It's not just super Micro, I. 44 00:02:08,320 --> 00:02:10,280 Speaker 1: Guess TBD right, Like we're going to find out what 45 00:02:10,280 --> 00:02:12,560 Speaker 1: happens with this one, all right, where shall we go next. 46 00:02:12,400 --> 00:02:14,040 Speaker 4: Yeah, so let's go to Dell. So this is kind 47 00:02:14,080 --> 00:02:16,080 Speaker 4: of the flip side of the server. Mark your trade. 48 00:02:16,160 --> 00:02:19,520 Speaker 4: So we're seeing this up about a little hundred three 49 00:02:19,560 --> 00:02:22,000 Speaker 4: percent right now. This is ticker d E l L. 50 00:02:22,440 --> 00:02:25,520 Speaker 4: So basically what it looks like is if SMCI is, 51 00:02:26,080 --> 00:02:30,040 Speaker 4: you know, having these issues, Dell could really get more 52 00:02:30,120 --> 00:02:32,400 Speaker 4: share here in this space. So a couple of analysts 53 00:02:32,480 --> 00:02:34,600 Speaker 4: and some investors I've spoken to saying that this really 54 00:02:34,600 --> 00:02:38,160 Speaker 4: could be a beneficiary because it's a competitor of SMC, 55 00:02:38,280 --> 00:02:39,360 Speaker 4: I have super micro. 56 00:02:40,120 --> 00:02:44,320 Speaker 3: All right, Dell moving in the opposite direction as SMCI. 57 00:02:43,960 --> 00:02:48,839 Speaker 1: Talks up of nearly thirty percent Dell this year, Like, woa. 58 00:02:48,400 --> 00:02:50,839 Speaker 3: Dude, you're getting a Dell remember that we remember that. Yeah, 59 00:02:51,040 --> 00:02:52,359 Speaker 3: very different company than it was. 60 00:02:52,320 --> 00:02:54,840 Speaker 1: Which is just the you know, definitely transformed. 61 00:02:55,040 --> 00:02:56,800 Speaker 3: Let's stay in the industry and talk Micron. 62 00:02:57,040 --> 00:02:59,960 Speaker 4: Yeah, so ticker MU. Micron has been an interesting one 63 00:03:00,080 --> 00:03:02,720 Speaker 4: this week. So share their down about five point three 64 00:03:02,760 --> 00:03:06,000 Speaker 4: percent today is a two day decline. I think this 65 00:03:06,080 --> 00:03:08,640 Speaker 4: is interesting because the company had really blow out earnings 66 00:03:08,720 --> 00:03:12,919 Speaker 4: on Wednesday after hours, really great you know, forward guidance 67 00:03:12,960 --> 00:03:15,480 Speaker 4: seems like everything's good, but it seems like investors are 68 00:03:15,480 --> 00:03:18,560 Speaker 4: really focusing on this higher capital spending that they're saying, 69 00:03:18,600 --> 00:03:20,799 Speaker 4: you know that they need to continue what's. 70 00:03:20,639 --> 00:03:23,040 Speaker 3: A few billion dollars here and there, right, and lets 71 00:03:23,080 --> 00:03:25,160 Speaker 3: want to see twenty two points something billion, and they 72 00:03:25,200 --> 00:03:26,519 Speaker 3: got twenty five billion. 73 00:03:26,880 --> 00:03:28,320 Speaker 4: Well, and it's all you know, it's all for the 74 00:03:28,360 --> 00:03:30,480 Speaker 4: AI trade. It's building out data centers. You know, it's 75 00:03:30,520 --> 00:03:33,200 Speaker 4: something that Micron needs to do to fulfill you know, 76 00:03:33,240 --> 00:03:35,800 Speaker 4: all the demand that they have in the memory space. 77 00:03:36,080 --> 00:03:37,920 Speaker 4: So it's interesting, I mean also to note that the 78 00:03:37,920 --> 00:03:40,120 Speaker 4: stock could run up, you know, fourteen percent, and three 79 00:03:40,200 --> 00:03:42,800 Speaker 4: days before results it was up sixty percent this year, 80 00:03:43,080 --> 00:03:44,840 Speaker 4: you know, ahead of those as well. So a lot 81 00:03:44,880 --> 00:03:46,920 Speaker 4: of buying, a lot of enthusiasm here a. 82 00:03:46,840 --> 00:03:49,120 Speaker 1: Double edged sword, right, Like, it's great to have all 83 00:03:49,120 --> 00:03:51,640 Speaker 1: that demand, but they can't they don't have enough supply 84 00:03:51,720 --> 00:03:53,400 Speaker 1: to meet it, and so they've got to do the buildout, 85 00:03:53,400 --> 00:03:55,280 Speaker 1: which costs a lot of money and sometimes more than 86 00:03:55,280 --> 00:03:57,840 Speaker 1: what they anticipated. And this gets to the story that 87 00:03:57,880 --> 00:04:02,200 Speaker 1: we constantly talk about these cycles where the demand is 88 00:04:02,280 --> 00:04:04,640 Speaker 1: outstripping the supply, and this is kind of I feel 89 00:04:04,640 --> 00:04:08,960 Speaker 1: like exponentially the demand is outstripping the supply and then 90 00:04:08,960 --> 00:04:10,680 Speaker 1: they've got to spend, and then you wonder, by the 91 00:04:10,680 --> 00:04:13,080 Speaker 1: time they build it, is that demand still there. I 92 00:04:13,120 --> 00:04:13,440 Speaker 1: don't know. 93 00:04:15,160 --> 00:04:17,440 Speaker 4: Yeah, it's definitely something that we're looking at in the 94 00:04:17,600 --> 00:04:19,800 Speaker 4: entire memory space. Right Like, these stocks have done so 95 00:04:19,920 --> 00:04:22,480 Speaker 4: incredibly well, people are definitely still excited about them as 96 00:04:22,560 --> 00:04:25,240 Speaker 4: part of the AI infrastructure trade. But it is a 97 00:04:25,320 --> 00:04:28,159 Speaker 4: very cyclical sector, so we're definitely looking at that as well. 98 00:04:30,000 --> 00:04:34,000 Speaker 2: The Stock Mover's Report from Bloomberg Radio. Check back with 99 00:04:34,080 --> 00:04:36,680 Speaker 2: us throughout the day for the latest roundup of companies 100 00:04:36,720 --> 00:04:39,840 Speaker 2: making news on Wall Street and for the latest market 101 00:04:39,880 --> 00:04:44,360 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 102 00:04:44,440 --> 00:04:47,919 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 103 00:04:48,000 --> 00:04:49,479 Speaker 2: the Bloomberg Business app.