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: Alexander Semenova joins US. Now, so what is on your
Speaker 3: radar today?
Speaker 1: That would have been a perfect segue, guys, to go
Speaker 1: from peanuts and snacks to chips, because all about chips,
Speaker 1: not the kind that you eat, the kind that are
Speaker 1: making some people very, very rich. Given the parabolic moves
Speaker 1: that we've seen in some of these run away by
Speaker 1: the move up in this group exactly. I mean I
Speaker 1: was just looking at Intel. When I last looked at it,
Speaker 1: it was up something like one percent. Now it's up
Speaker 1: two point eight percent. Also, Amd is up again more
Speaker 1: than two percent. In Nvidia is climbing about two point
Speaker 1: seven percent. This entire group has just been on a tear.
Speaker 1: The Philadelphia Semiconductor Stock Exchange Index is up something like
Speaker 1: sixty percent over the last six weeks, and by every metric,
Speaker 1: these valuations are getting incredibly extreme. These stocks are getting overbought.
Speaker 1: Michael Burry issued another learning about the group, talking about
Speaker 1: how this feels a little bit like nineteen ninety nine,
Speaker 1: but it's not stopping people from buying. We had retail investors.
Speaker 3: Would people buy I just want to point out the difference.
Speaker 3: Would we push back a little bit, just to play
Speaker 3: Devil's advocate? Would people push back on that and say,
Speaker 3: we actually have earnings with these companies?
Speaker 4: Right?
Speaker 1: You have the earnings you have for these data centers
Speaker 1: and the hardware that is building out AI infrastructure.
Speaker 3: A lot of the companies that went parabolic in the
Speaker 3: dot com boom had no earning.
Speaker 4: Yeah, there was nothing to back them.
Speaker 1: And bubbles can keep inflating for a very long time.
Speaker 1: Trying to time these kinds of things can really lead
Speaker 1: you to miss out on a lot of outsized gains.
Speaker 1: But the thing is when you are at these extreme
Speaker 1: levels buying and then the risks of fortunes reversing are
Speaker 1: very high. Right, if things go in the wrong direction,
Speaker 1: if we get one bad report from one of these companies,
Speaker 1: that things can turn very quickly.
Speaker 4: Our customer pulls back and we know the supply chain
Speaker 4: has been constrained. We're going to actually come back to
Speaker 4: this in a moment because it just speaks to the
Speaker 4: moment in time when it comes to semiconductors. Let's get
Speaker 4: to another name, Mosaic. You're also watching.
Speaker 1: Yeah, this is a really interesting company. So the war
Speaker 1: in Iran has sent fertilizer prices soaring, and this fertilizer producer,
Speaker 1: actually you would think that it would be a boon
Speaker 1: for the company, but it's really struggled through the conflict
Speaker 1: through the closure of the Straight of Horror moves because
Speaker 1: any potential revenue gains that it would have gotten from
Speaker 1: higher prices from fertilizer were actually offset by supply chain bottlenecks.
Speaker 1: So Mosaic reported a three hundred and seventy three million
Speaker 1: dollar operating loss. It also reported adjusting earnings per share
Speaker 1: that came in well below Wall Street estimates. And this
Speaker 1: is because of the surging raw costs for raw materials
Speaker 1: like sulfur ammonia and sulfuric asset. So that was all
Speaker 1: offsetting those potential revenue gains and this created bottlenecks for
Speaker 1: the company. About a fifth of global phosphate trade UH
Speaker 1: and nearly half of the world's sulfur trade depends on
Speaker 1: the Strait of Hormones, which has been yeah closed.
Speaker 3: I'm adding this one to my decliners. That's a really
Speaker 3: good one.
Speaker 1: That is a really good company. You're not talking about
Speaker 1: fertilizer every day, very well, we have been.
Speaker 3: Talking about them a lot because of the strait of Hormons.
Speaker 3: I think a lot of people, you know, ten weeks ago,
Speaker 3: thought oh, we're just gonna be talking about oil and gas.
Speaker 3: But the downstream effects of this being closed, people are
Speaker 3: learning a lot about phosphates, yes, exactly, other things, other
Speaker 3: things from sophomore year chemistry class, yes, in high school.
Speaker 4: That bring out the charts right, Yeah.
Speaker 3: To periodic table.
Speaker 4: We said we were going to kind of come back
Speaker 4: to the semiconductor space because we do have. First of all,
Speaker 4: the IPO markets come back, right. We've certainly start to
Speaker 4: see a lot of listings this year. There's a big
Speaker 4: one that we are watching in the AI infrastructure space.
Speaker 1: Yeah, Cerebrace Systems. So it increased the size of its IPO.
Speaker 1: It is now seeking to raise as much as four
Speaker 1: point eight billion dollars. So this is as demand for
Speaker 1: the company's shares are starting to kind of explode. And
Speaker 1: just a testament of that is apparently it was asking
Speaker 1: institutional investors how many shares they want and how much
Speaker 1: they're willing to pay for them to gauge kind of
Speaker 1: the outside demands that they're experiencing. And for context, the
Speaker 1: company is offering thirty million shares for one hundred and
Speaker 1: fifty t one hundred and sixty dollars a pop. Just
Speaker 1: recently and marketed twenty eight million shares for about one
Speaker 1: hundred and fifteen dollars each. This is, according to SEC filings.
Speaker 3: Topic of a company. Could this be once it goes
Speaker 3: public a gigantic Yeah, this is like really really massive
Speaker 3: I've been talking about.
Speaker 1: This is another huge IPO and another testament of the
Speaker 1: demand for AI built.
Speaker 4: Yeah. I think what's interesting too, write another chip maker
Speaker 4: coming on, and you do wonder what it means for
Speaker 4: some of the existing players, because I do feel like
Speaker 4: we slowly are getting a narrative of Yeah, Nvidia is
Speaker 4: the behemoth in the space, it's the AI chip company.
Speaker 4: But you do wonder if there's other companies they're going
Speaker 4: to start to kind of pick apart theirs.
Speaker 1: And videos GPUs, all these other companies are also.
Speaker 4: Piling in nice stuff. All right, we'll look forward.
Speaker 2: To that one. The Stockmover's report from Bloomberg Radio check
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Speaker 2: of companies making news on Wall Street, and for the
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