WEBVTT - OpenAI-AMD Deal; Fifth Third Buys Comerica; Critical Metals Potential US Stake

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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 on a

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<v Speaker 3>morning that has turned out to be very busy on

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<v Speaker 3>the deal front in more ways than one. A huge

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<v Speaker 3>deal just announced that has shares of Advanced micro Devices

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<v Speaker 3>soaring this morning. Valerie, good morning.

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<v Speaker 1>Good morning, Nathan, Yes, absolutely soaring. Shares of AMD are

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<v Speaker 1>up almost twenty five percent in the pre market trade.

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<v Speaker 1>This comes after open ai has signed a deal with

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<v Speaker 1>AMD worth tens of billions of dollars worth of chips

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<v Speaker 1>as part of a bigger deal that could also see

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<v Speaker 1>open Ai take roughly a ten percent stake in the

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<v Speaker 1>chip maker overtime. Now, AMD has given open Ai a

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<v Speaker 1>warrant for up to one hundred and six million shares,

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<v Speaker 1>which will vest as milestones are achieved, but open Ai

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<v Speaker 1>agreeing to purchase processors with a total power consumption of

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<v Speaker 1>six gigawatts. Nathan, that's roughly equivalent to Singapore's average power demand.

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<v Speaker 1>Now The companies did not put a total figure on

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<v Speaker 1>the transaction, but the back of the envelope calculation is

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<v Speaker 1>at least tens of billions of dollars. So for AMD,

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<v Speaker 1>this deal keeps its technology really in the mix with

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<v Speaker 1>open Ai and other owners of large scale data centers.

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<v Speaker 1>The chip maker remains a distant second to Navidia in

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<v Speaker 1>the market share for so called accelerator chips. We also

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<v Speaker 1>know that Intel is very involved in that market as well,

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<v Speaker 1>so we're seeing the likes of Navidia decline off the

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<v Speaker 1>back of this down five tens of a percent, Intel

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<v Speaker 1>down one point six percent.

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<v Speaker 3>A huge move for AMD. This morning, we have some

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<v Speaker 3>more traditional deal news on this merger Monday that's got

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<v Speaker 3>Comerica up this morning as well.

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<v Speaker 4>Yeah, M and A in the banking sector.

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<v Speaker 1>Fifth Third is to buy Comerica for eighty two dollars

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<v Speaker 1>and eighty eight cents a share. We're seeing the price

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<v Speaker 1>of Comerica jump by seven percent fifth Third falling by

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<v Speaker 1>six percent so far in pre market trade. This is

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<v Speaker 1>an all stock M and A deal valuing co America

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<v Speaker 1>at ten point nine billion dollars and will create the

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<v Speaker 1>ninth biggest US bank with about three hundred billion dollars

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<v Speaker 1>in assets. The deal is the latest sign that regional

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<v Speaker 1>banks across the US are looking to take advantage of

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<v Speaker 1>the new looser regulatory environment under President Trump, who's ushered

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<v Speaker 1>in an era of financial deregulation, leading many bankers to

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<v Speaker 1>expect his administration to go easier on mortgage sorry, merger

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<v Speaker 1>approvals in.

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<v Speaker 4>The industry, especially the banking industry.

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<v Speaker 3>Now we've got more word that the US government may

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<v Speaker 3>be looking to make some of its own deals.

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<v Speaker 1>Yeah, Critical Minerals is up sixty nine percent in pre

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<v Speaker 1>market trade. The stock is surging on a potential stake

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<v Speaker 1>in the company the US government. This was a story

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<v Speaker 1>reported by Reuters, saying that the Trump administration has discussed

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<v Speaker 1>converting a government grant into an eight percent stake in

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<v Speaker 1>the rare Metals Minor. If this deal is finalized, it

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<v Speaker 1>would give the US government direct interests in the largest

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<v Speaker 1>rare earth project in Greenland. Similar moves have been made

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<v Speaker 1>recently with the US government and loans and chip grants, such.

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<v Speaker 4>As the likes of Intel.

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<v Speaker 1>That's how they converted their equity stake, sorry, their loan

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<v Speaker 1>into an equity steak as well.

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

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