WEBVTT - Nvidia Jumps, Coinbase Soars, Super Micro Computer Surges

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<v Speaker 1>Bloomberg Audio Studios Podcasts, Radio News.

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<v Speaker 2>The Stock Movers podcast, 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 1>Well, I'm Tim Stanebeck along with Carol Masser. Let's take

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<v Speaker 1>a look at some stocks on the move today. We

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<v Speaker 1>are joined now by Bloomberg News cross Asset reporter Emily GRIFFEO, Emily,

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<v Speaker 1>you got a lot to chew. You had a lot

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<v Speaker 1>to choose from in today's session. What caught your eye?

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<v Speaker 3>I did, and I picked like the most talked about

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<v Speaker 3>stock on Wall Street, But it moved up a lot today.

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<v Speaker 3>I'm talking about shares of Nvidia, the chip company. It

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<v Speaker 3>was up as much as six point seven percent after

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<v Speaker 3>CEO Jensen Wong announced the company will send semiconductors to

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<v Speaker 3>Saudio Arabian AI company Humane for a data center build out.

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<v Speaker 3>So data centers. That's a really big area for any

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<v Speaker 3>companies focused on AI because you need data centers to

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<v Speaker 3>power AI processes. And this is all part of a

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<v Speaker 3>Trump administration initiative that lifts previous restrictions on shipping advanced

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<v Speaker 3>AI capabilities to the region.

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<v Speaker 4>Just gonna say, right, Jensen, there he announcing it right

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<v Speaker 4>at the Saudi US Investment Forum in riod so down

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<v Speaker 4>on the ground with the president and some other you know,

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<v Speaker 4>top business leaders. But this is that was a pretty

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<v Speaker 4>big announcement.

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<v Speaker 3>Yeah, it was. And the Trump administration is, at least

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<v Speaker 3>according to Bloomberg's reporting, they plan to overhaul regulations on

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<v Speaker 3>the export of semiconductors used in AI. This is a

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<v Speaker 3>big win for companies like in video, because they're tossing

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<v Speaker 3>out a Biden error approach that had a lot of

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<v Speaker 3>objections from US allies and companies, including in video.

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<v Speaker 4>All right, can we talk about.

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<v Speaker 1>You own coinbase, you owned.

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<v Speaker 4>Crypto, you own crypto, you own you know.

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<v Speaker 1>I will say, well, Emily, you go ahead and you

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<v Speaker 1>know all annoy Carrol Mas.

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<v Speaker 4>This is definitely one of the mega winners in today's session.

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<v Speaker 4>It is mega gainers.

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<v Speaker 3>I guess Coinbase.

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<v Speaker 4>If you were shorting it, you didn't feel like you're

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<v Speaker 4>a winner.

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<v Speaker 3>No, But if you were long it, or if you're

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<v Speaker 3>trying to get in on the trade before it's actually

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<v Speaker 3>added into the S and P five hundred, you made

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<v Speaker 3>some money today. The stock was up finished the day

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<v Speaker 3>up twenty four percent. It was announced after the close

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<v Speaker 3>yesterday that this company's being added to the S and

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<v Speaker 3>P five hundred index, the world's arguably most famous index.

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<v Speaker 3>This is the first crypto company to be added to

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<v Speaker 3>the SMP so it's a big milestone all of the

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<v Speaker 3>Coinbase execs. Brian Armstrong, he kind of tweeted like a

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<v Speaker 3>victory lap, so go look at his tweets on Twitter

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<v Speaker 3>or x. But yeah, this is a lot of what

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<v Speaker 3>we're seeing now is what traders call the index effect.

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<v Speaker 3>So they anticipate that passive funds that have to track

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<v Speaker 3>the S and P five hundred closely will actually have

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<v Speaker 3>to buy the stock on the date gets added to

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<v Speaker 3>the index. That's not for another week, so a lot

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<v Speaker 3>of hedge funds arbitragers will try and buy the stock

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<v Speaker 3>before that, anticipating that there'll be a lot of buying

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<v Speaker 3>in a week.

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<v Speaker 4>I mean, prior to this, the stock was down a lot.

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<v Speaker 3>Yeah. Yeah, it's been like it's been kind of a

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<v Speaker 3>wild ride for crypto this year because like these companies

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<v Speaker 3>were supposed to do really well after Trump won the election.

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<v Speaker 3>They obviously now are with this stock up a lot

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<v Speaker 3>and being added to the S and P five hundred,

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<v Speaker 3>But it was not a straight line up.

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<v Speaker 1>It hasn't been like an I'm just looking at the

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<v Speaker 1>forever chart. Yeah, going back to twenty twenty one, a

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<v Speaker 1>hard chart maybe even goes back to all the way

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<v Speaker 1>to yeah, even yeah, the early twenty twenty one. Yeah,

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<v Speaker 1>it's still twenty eight percent off of the all time

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<v Speaker 1>highs that it reached back in November of twenty twenty one.

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<v Speaker 3>Yeah, it depends how you look at it, because over

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<v Speaker 3>the last two years it's up something like two hundred

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<v Speaker 3>and seventy percent depending on when you got in. It's

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<v Speaker 3>just one of the.

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<v Speaker 4>Plice at different points, right and get a different picture.

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<v Speaker 4>Let's talk about super micro because that also serves in

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<v Speaker 4>today's session.

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<v Speaker 3>Yes, so that stock was up at least over eight

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<v Speaker 3>percent at one point on the day. I'm just getting

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<v Speaker 3>that to load. Yeah, I'd actually finished the day up

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<v Speaker 3>sixteen percent. They had an outperform rating at Raymond James,

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<v Speaker 3>so they initiated coverage at Raymond Jane. The broker said

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<v Speaker 3>super microcomputer has emerged as a market leader in AI

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<v Speaker 3>optimized infrastructure. I mean, that's kind of all you really

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<v Speaker 3>need to hear. All in, they set a price target

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<v Speaker 3>of forty one dollars, which now with today's rise, it's

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<v Speaker 3>pretty close to that. So maybe Raymond James is going

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<v Speaker 3>to have to come back and up that price target

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<v Speaker 3>because now the stock is at like almost thirty nine dollars.

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<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

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