Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Carol Masser along with Tim Stenevik. Let's get to
Speaker 1: some stocks on the move of Bloomberg News. Equities reporter
Speaker 1: and deputy team leader for US Equities Carmen Reinicky is
Speaker 1: in the house. We're almost there.
Speaker 3: Well are we Well, yeah, we're getting there. We're getting there.
Speaker 1: Some big moves though, And one name that we are
Speaker 1: talking about a lot today, we're going to talk about
Speaker 1: it as well.
Speaker 4: Yeah, so that's super micro Micro ticker SMCI. So we're
Speaker 4: down thirty two percent right now. This is the most
Speaker 4: sense sort of end of October with twenty twenty four,
Speaker 4: so three individuals associated with the company were indicted by
Speaker 4: the US Attorney's office. So this includes the co founder
Speaker 4: who's charged with smuggling chips to China. So really significant
Speaker 4: here for this company. H And I also like to
Speaker 4: point out here, so super Micro has had a pretty
Speaker 4: rough stretch of years. So this company was almost delisted
Speaker 4: in twenty twenty four, and just at the beginning of
Speaker 4: twenty twenty five that was sort of resolved and it's
Speaker 4: stayed listed and it stayed apart or you know, it's
Speaker 4: a part of the S and P five hundred. But
Speaker 4: so you know, they've had some regulatory concerns over there
Speaker 4: financials and now this so just a lot of I
Speaker 4: think overhangs over the stock.
Speaker 2: What do they do?
Speaker 4: So they're server maker, okay, and they are associated with
Speaker 4: in video as well, so they've gotten they've had they
Speaker 4: had a big run up because of you know, the
Speaker 4: AI trade, but then also you know, struggled with some
Speaker 4: other issues that led to volatility.
Speaker 1: I feel like we have talked so much over the
Speaker 1: last couple of years on this company of it.
Speaker 3: Look, I mean the biggest suppliers for super Micro including Video, Broadcom, Intel, Micron,
Speaker 3: and Western Digital, and it is a big name.
Speaker 2: You know.
Speaker 3: According to the Bloomberg Terminal, more than fifty percent of
Speaker 3: what SMCI spends goes to in video. But a lot
Speaker 3: of people spend a lot of money within video.
Speaker 1: Yeah no, yeah, those are big numbers all around me.
Speaker 3: It's not just super Micro, I.
Speaker 1: Guess TBD right, Like we're going to find out what
Speaker 1: happens with this one, all right, where shall we go next.
Speaker 4: Yeah, so let's go to Dell. So this is kind
Speaker 4: of the flip side of the server. Mark your trade.
Speaker 4: So we're seeing this up about a little hundred three
Speaker 4: percent right now. This is ticker d E l L.
Speaker 4: So basically what it looks like is if SMCI is,
Speaker 4: you know, having these issues, Dell could really get more
Speaker 4: share here in this space. So a couple of analysts
Speaker 4: and some investors I've spoken to saying that this really
Speaker 4: could be a beneficiary because it's a competitor of SMC,
Speaker 4: I have super micro.
Speaker 3: All right, Dell moving in the opposite direction as SMCI.
Speaker 1: Talks up of nearly thirty percent Dell this year, Like, woa.
Speaker 3: Dude, you're getting a Dell remember that we remember that. Yeah,
Speaker 3: very different company than it was.
Speaker 1: Which is just the you know, definitely transformed.
Speaker 3: Let's stay in the industry and talk Micron.
Speaker 4: Yeah, so ticker MU. Micron has been an interesting one
Speaker 4: this week. So share their down about five point three
Speaker 4: percent today is a two day decline. I think this
Speaker 4: is interesting because the company had really blow out earnings
Speaker 4: on Wednesday after hours, really great you know, forward guidance
Speaker 4: seems like everything's good, but it seems like investors are
Speaker 4: really focusing on this higher capital spending that they're saying,
Speaker 4: you know that they need to continue what's.
Speaker 3: A few billion dollars here and there, right, and lets
Speaker 3: want to see twenty two points something billion, and they
Speaker 3: got twenty five billion.
Speaker 4: Well, and it's all you know, it's all for the
Speaker 4: AI trade. It's building out data centers. You know, it's
Speaker 4: something that Micron needs to do to fulfill you know,
Speaker 4: all the demand that they have in the memory space.
Speaker 4: So it's interesting, I mean also to note that the
Speaker 4: stock could run up, you know, fourteen percent, and three
Speaker 4: days before results it was up sixty percent this year,
Speaker 4: you know, ahead of those as well. So a lot
Speaker 4: of buying, a lot of enthusiasm here a.
Speaker 1: Double edged sword, right, Like, it's great to have all
Speaker 1: that demand, but they can't they don't have enough supply
Speaker 1: to meet it, and so they've got to do the buildout,
Speaker 1: which costs a lot of money and sometimes more than
Speaker 1: what they anticipated. And this gets to the story that
Speaker 1: we constantly talk about these cycles where the demand is
Speaker 1: outstripping the supply, and this is kind of I feel
Speaker 1: like exponentially the demand is outstripping the supply and then
Speaker 1: they've got to spend, and then you wonder, by the
Speaker 1: time they build it, is that demand still there. I
Speaker 1: don't know.
Speaker 4: Yeah, it's definitely something that we're looking at in the
Speaker 4: entire memory space. Right Like, these stocks have done so
Speaker 4: incredibly well, people are definitely still excited about them as
Speaker 4: part of the AI infrastructure trade. But it is a
Speaker 4: very cyclical sector, so we're definitely looking at that as well.
Speaker 2: The Stock Mover's Report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.