1 00:00:02,520 --> 00:00:09,960 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The Stock Movers Report, 2 00:00:10,240 --> 00:00:13,440 Speaker 1: your roundup of companies making moves in the stock market, 3 00:00:13,680 --> 00:00:15,840 Speaker 1: harnessing the power of Bloomberg Data. 4 00:00:16,440 --> 00:00:18,360 Speaker 2: Let's take a look at some of the stocks on 5 00:00:18,640 --> 00:00:21,720 Speaker 2: the move today. AM Paul Sweeney alongside John Tucker. We're 6 00:00:21,760 --> 00:00:24,600 Speaker 2: joined by Bomberg's Least Mitaeleish. What are you looking at all? Right? 7 00:00:24,600 --> 00:00:27,960 Speaker 3: We want to start with Taiwan Semiconductor Manufacturing ticker TSM. 8 00:00:28,560 --> 00:00:30,960 Speaker 3: Their shares been up as much as two percent. So 9 00:00:31,080 --> 00:00:33,720 Speaker 3: here's the thing, right, It posted better than expected thirty 10 00:00:33,800 --> 00:00:36,640 Speaker 3: nine percent jump in profit, hiked its projection for twenty 11 00:00:36,680 --> 00:00:39,360 Speaker 3: twenty five revenue growth for the second time this year, 12 00:00:40,000 --> 00:00:44,040 Speaker 3: raise its forecast for capital spending, which is key. So 13 00:00:44,080 --> 00:00:47,920 Speaker 3: what it's basically doing it it's reinforcing hopes on how 14 00:00:47,960 --> 00:00:50,600 Speaker 3: long the global AI boom spending is going to stick around. 15 00:00:51,080 --> 00:00:53,080 Speaker 3: It's also showing a little bit more approof how chip 16 00:00:53,120 --> 00:00:55,920 Speaker 3: makers stand to be among the biggest winners from that boom. 17 00:00:56,080 --> 00:00:58,320 Speaker 3: And that boom and we've talked about it expected to 18 00:00:58,320 --> 00:01:01,920 Speaker 3: push past one trillion dollars in coming years. That's a 19 00:01:02,000 --> 00:01:05,920 Speaker 3: lot of money. Now when we look at chip equipment stock. 20 00:01:06,040 --> 00:01:09,200 Speaker 3: So for example, you look at ASML, which gets seventeen 21 00:01:09,200 --> 00:01:12,800 Speaker 3: percent of its revenue from TSMC, their ADRs are up 22 00:01:12,840 --> 00:01:15,480 Speaker 3: nearly two percent. And then in the US, if you 23 00:01:15,520 --> 00:01:20,800 Speaker 3: watch TSMC suppliers for example like Applied Materials KLA LAMB Research, 24 00:01:20,880 --> 00:01:23,960 Speaker 3: their shares are all up about one percent. So some 25 00:01:24,000 --> 00:01:27,520 Speaker 3: good news for Taiwan semiconductor manufacturing. Where the bad news 26 00:01:27,600 --> 00:01:31,480 Speaker 3: is that is computer hardware storage company Hewlett Packard Enterprises 27 00:01:31,560 --> 00:01:34,800 Speaker 3: ticker HPE. Their shares have been down as much as 28 00:01:34,920 --> 00:01:37,800 Speaker 3: nine percent. What they did, they issued a full year 29 00:01:37,880 --> 00:01:41,679 Speaker 3: forecast for profiting cash flow fell short of estimates. And 30 00:01:41,760 --> 00:01:44,480 Speaker 3: you know HPE, right, it's one of the largest makers 31 00:01:44,480 --> 00:01:47,520 Speaker 3: of computing equipment, so it's betting on networking as this 32 00:01:47,640 --> 00:01:50,840 Speaker 3: major piece of its future expansion. How it wants to expand. 33 00:01:50,960 --> 00:01:54,240 Speaker 3: If you remember back in July, it said that it 34 00:01:54,280 --> 00:01:56,920 Speaker 3: was going to buy Juniper Networks for about thirteen billion dollars. 35 00:01:57,640 --> 00:02:01,160 Speaker 3: But HP they have tighter margins to building these servers 36 00:02:01,160 --> 00:02:04,000 Speaker 3: with those expensive AI chips, and they have made the 37 00:02:04,040 --> 00:02:06,960 Speaker 3: machines a little bit less profitable, and that's the problem. 38 00:02:07,040 --> 00:02:10,400 Speaker 2: The stock was up, you know, seventeen percent your date, 39 00:02:10,480 --> 00:02:12,119 Speaker 2: So it's going to it's giving back a good chunk 40 00:02:12,160 --> 00:02:12,600 Speaker 2: of that today. 41 00:02:12,600 --> 00:02:14,880 Speaker 4: Give me that his When was it that they split 42 00:02:14,919 --> 00:02:18,919 Speaker 4: apart HP and HGP twenty four, twenty fifteen, right. 43 00:02:19,000 --> 00:02:22,160 Speaker 2: Yeah, something like that. Yeah, and HPE and HPQ are 44 00:02:22,200 --> 00:02:22,919 Speaker 2: the two ones. 45 00:02:23,280 --> 00:02:23,920 Speaker 4: But that's just I. 46 00:02:23,919 --> 00:02:27,919 Speaker 2: Mean, hp is one of the founding members of Silicon Valley. 47 00:02:27,919 --> 00:02:28,760 Speaker 4: That's how I think about it. 48 00:02:28,800 --> 00:02:30,840 Speaker 2: Oracle, Intel, those kinds of names. 49 00:02:30,919 --> 00:02:33,800 Speaker 3: I always with those tickers, make them like HPQ. 50 00:02:33,760 --> 00:02:35,600 Speaker 2: I need too on a rock? What do I need 51 00:02:35,639 --> 00:02:36,000 Speaker 2: to do here? 52 00:02:36,360 --> 00:02:37,200 Speaker 4: Exactly? 53 00:02:37,960 --> 00:02:40,000 Speaker 3: H and we'll stick with There were loads of software 54 00:02:40,040 --> 00:02:44,520 Speaker 3: company Salesforce. This one is ticker a CRM. Their shares 55 00:02:44,520 --> 00:02:48,240 Speaker 3: have been up more than about five percent forecast revenue growth. 56 00:02:48,280 --> 00:02:50,440 Speaker 3: It's going to accelerate to double digits in the coming year. 57 00:02:50,520 --> 00:02:52,960 Speaker 3: So that was a big news and that kind of 58 00:02:52,960 --> 00:02:55,560 Speaker 3: ease investor concerns about the pace of the business. What 59 00:02:55,720 --> 00:02:58,239 Speaker 3: investors they were worried about is that customers were spending 60 00:02:58,240 --> 00:03:01,760 Speaker 3: their budgets on AI tools from startup companies instead of 61 00:03:01,840 --> 00:03:05,000 Speaker 3: like traditional vendors like Salesforce. So this kind of reassured 62 00:03:05,040 --> 00:03:08,320 Speaker 3: that for them. They expect sixty billion dollars in annual 63 00:03:08,360 --> 00:03:11,920 Speaker 3: revenue by fiscal year ending in January twenty thirty. That 64 00:03:11,960 --> 00:03:15,560 Speaker 3: excludes any contribution from the planned exquisition they have from Informatica. 65 00:03:16,200 --> 00:03:17,680 Speaker 3: But the company is also going to buy back an 66 00:03:17,680 --> 00:03:20,760 Speaker 3: additional seven billion of shares in the next six months. 67 00:03:20,840 --> 00:03:23,600 Speaker 3: So it's really the good news that the company needed. 68 00:03:23,720 --> 00:03:26,280 Speaker 3: I mean, the stock has taken a hit drop about 69 00:03:26,280 --> 00:03:28,480 Speaker 3: twenty nine percent through Wednesday's closing. 70 00:03:28,200 --> 00:03:32,520 Speaker 2: And it had been such a classic winner, classic software story, 71 00:03:32,560 --> 00:03:34,359 Speaker 2: It's just always going to work. But then people said 72 00:03:34,360 --> 00:03:37,080 Speaker 2: AI is AI going to replace a lot of the 73 00:03:37,960 --> 00:03:41,480 Speaker 2: functionality of some of the salesforce software? That was I 74 00:03:41,480 --> 00:03:43,280 Speaker 2: think the concern I heard from some of the tech books. 75 00:03:43,360 --> 00:03:46,320 Speaker 4: Gee, I sense a common theme running through all these 76 00:03:46,360 --> 00:03:48,280 Speaker 4: stocks this morning, Lisa. 77 00:03:48,240 --> 00:03:50,920 Speaker 3: Well except for the last one, United Airlines. There you go, 78 00:03:51,000 --> 00:03:51,920 Speaker 3: I'll sneak that one in there. 79 00:03:52,000 --> 00:03:54,440 Speaker 4: You just heard from the CEO earlier, Kirby. 80 00:03:54,560 --> 00:03:57,120 Speaker 3: Yes, Remember he was just talking about saying that they're 81 00:03:57,160 --> 00:04:00,320 Speaker 3: getting more corporate clients. He was saying International tray is 82 00:04:00,360 --> 00:04:03,160 Speaker 3: coming back when he was telling Lisa Bromwitz. So it's 83 00:04:03,200 --> 00:04:06,080 Speaker 3: ticker u al. But the problem is that their shares 84 00:04:06,120 --> 00:04:08,520 Speaker 3: have kind of taken a turn. They've slipped down more 85 00:04:08,560 --> 00:04:11,800 Speaker 3: than one percent because analysts a Bloomberg Intelligence are saying 86 00:04:11,840 --> 00:04:15,720 Speaker 3: the airlines results, they're showing signs of saturation even in 87 00:04:15,760 --> 00:04:18,480 Speaker 3: the premium seats that they say more people are starting 88 00:04:18,520 --> 00:04:22,080 Speaker 3: to buy. So that's the difference there. But yeah, they've 89 00:04:22,120 --> 00:04:25,000 Speaker 3: been trying to like focus on that that more expensive 90 00:04:25,080 --> 00:04:26,000 Speaker 3: travel experience. 91 00:04:26,120 --> 00:04:27,880 Speaker 2: I just booked the rub I just booked the rubis 92 00:04:27,920 --> 00:04:31,279 Speaker 2: so pretty January. No, No, we did the like you 93 00:04:31,320 --> 00:04:34,920 Speaker 2: know that the mets A, METSA, the middle the premiumconist. 94 00:04:36,120 --> 00:04:40,160 Speaker 1: The Stock Movers Report from Bloomberg Radio. Check back with 95 00:04:40,240 --> 00:04:42,839 Speaker 1: us throughout the day for the latest roundup of companies 96 00:04:42,880 --> 00:04:46,000 Speaker 1: making news on Wall Street and for the latest market 97 00:04:46,000 --> 00:04:50,480 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 98 00:04:50,560 --> 00:04:54,080 Speaker 1: Bloomberg dot com, and on Applecarplay and Android Auto with 99 00:04:54,160 --> 00:04:55,640 Speaker 1: the Bloomberg Business app.