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 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel on a
Speaker 3: morning that has turned out to be very busy on
Speaker 3: the deal front in more ways than one. A huge
Speaker 3: deal just announced that has shares of Advanced micro Devices
Speaker 3: soaring this morning. Valerie, good morning.
Speaker 1: Good morning, Nathan, Yes, absolutely soaring. Shares of AMD are
Speaker 1: up almost twenty five percent in the pre market trade.
Speaker 1: This comes after open ai has signed a deal with
Speaker 1: AMD worth tens of billions of dollars worth of chips
Speaker 1: as part of a bigger deal that could also see
Speaker 1: open Ai take roughly a ten percent stake in the
Speaker 1: chip maker overtime. Now, AMD has given open Ai a
Speaker 1: warrant for up to one hundred and six million shares,
Speaker 1: which will vest as milestones are achieved, but open Ai
Speaker 1: agreeing to purchase processors with a total power consumption of
Speaker 1: six gigawatts. Nathan, that's roughly equivalent to Singapore's average power demand.
Speaker 1: Now The companies did not put a total figure on
Speaker 1: the transaction, but the back of the envelope calculation is
Speaker 1: at least tens of billions of dollars. So for AMD,
Speaker 1: this deal keeps its technology really in the mix with
Speaker 1: open Ai and other owners of large scale data centers.
Speaker 1: The chip maker remains a distant second to Navidia in
Speaker 1: the market share for so called accelerator chips. We also
Speaker 1: know that Intel is very involved in that market as well,
Speaker 1: so we're seeing the likes of Navidia decline off the
Speaker 1: back of this down five tens of a percent, Intel
Speaker 1: down one point six percent.
Speaker 3: A huge move for AMD. This morning, we have some
Speaker 3: more traditional deal news on this merger Monday that's got
Speaker 3: Comerica up this morning as well.
Speaker 4: Yeah, M and A in the banking sector.
Speaker 1: Fifth Third is to buy Comerica for eighty two dollars
Speaker 1: and eighty eight cents a share. We're seeing the price
Speaker 1: of Comerica jump by seven percent fifth Third falling by
Speaker 1: six percent so far in pre market trade. This is
Speaker 1: an all stock M and A deal valuing co America
Speaker 1: at ten point nine billion dollars and will create the
Speaker 1: ninth biggest US bank with about three hundred billion dollars
Speaker 1: in assets. The deal is the latest sign that regional
Speaker 1: banks across the US are looking to take advantage of
Speaker 1: the new looser regulatory environment under President Trump, who's ushered
Speaker 1: in an era of financial deregulation, leading many bankers to
Speaker 1: expect his administration to go easier on mortgage sorry, merger
Speaker 1: approvals in.
Speaker 4: The industry, especially the banking industry.
Speaker 3: Now we've got more word that the US government may
Speaker 3: be looking to make some of its own deals.
Speaker 1: Yeah, Critical Minerals is up sixty nine percent in pre
Speaker 1: market trade. The stock is surging on a potential stake
Speaker 1: in the company the US government. This was a story
Speaker 1: reported by Reuters, saying that the Trump administration has discussed
Speaker 1: converting a government grant into an eight percent stake in
Speaker 1: the rare Metals Minor. If this deal is finalized, it
Speaker 1: would give the US government direct interests in the largest
Speaker 1: rare earth project in Greenland. Similar moves have been made
Speaker 1: recently with the US government and loans and chip grants, such.
Speaker 4: As the likes of Intel.
Speaker 1: That's how they converted their equity stake, sorry, their loan
Speaker 1: into an equity steak as well.
Speaker 2: The stock Moover'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
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