WEBVTT - Super Micro Seeks Equity Deal; TSMC Sales Rise; Cracker Barrel Guidance

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg Stan Curtis starting us

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<v Speaker 1>off with the biggest decliner in the early trade, Dan,

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<v Speaker 1>why is super Micro sinking this morning? Good morning, Good.

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<v Speaker 3>Morning, Nathan. Super Micro shares are down ten percent SMCI.

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<v Speaker 3>And this is another AI company coming to market and

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<v Speaker 3>looking to raise money. The AI Infrastructure Company is planning

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<v Speaker 3>a seven billion dollar fundraising round using equity and equity

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<v Speaker 3>linked financing. Five billions of that five billion of that

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<v Speaker 3>will be an underwritten offering that is expected to price

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<v Speaker 3>a day. The other two billion is an at the

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<v Speaker 3>market program, so basically direct selling into the market, and

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<v Speaker 3>that's starting no earlier than the third quarter. The company

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<v Speaker 3>as thirty nine billion dollars in orders of orders of

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<v Speaker 3>Nvidia powered servers. The proceeds would be used to help

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<v Speaker 3>pay for the equipment needed, and this was one of

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<v Speaker 3>the early winners of the AI trade. Share skyrocketed in

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<v Speaker 3>early twenty twenty four, but they've now lost about two

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<v Speaker 3>thirds of their value from that peak. They're facing competition

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<v Speaker 3>from the likes of Dell and Hewlett Packard Enterprise on

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<v Speaker 3>the server providing side, and this is the company raising

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<v Speaker 3>money and trying to re establish itself back in the

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<v Speaker 3>server game.

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<v Speaker 1>Now maybe this is the other side of the coin.

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<v Speaker 1>This morning, we're watching shares of Taiwan Semi sore today.

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<v Speaker 3>Yeah, so Taiwan Semi, they were up in Korea, they're

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<v Speaker 3>coming back in the pre market. On the ADR sticker.

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<v Speaker 3>At TSM is down three percent in the pre market,

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<v Speaker 3>and the Taiwan chipmaker report a thirty percent rise in

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<v Speaker 3>monthly sales for May. But Bloomberg did the calculations and

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<v Speaker 3>when we combined those sales with April, the sales data

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<v Speaker 3>shows a twenty four percent rise from a year ago

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<v Speaker 3>for the first two months of this quarter, and analysts

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<v Speaker 3>are looking for a thirty five percent increase. While these

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<v Speaker 3>are big numbers, they're not quite big enough to impress

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<v Speaker 3>Wall Street. TSMC in general does remain bullish on ai

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<v Speaker 3>chip demand, and it did raise its full year guidance

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<v Speaker 3>in April, seeing a large drive from KAPEC spending and

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<v Speaker 3>this pullback does come with ADRs up forty percent year

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<v Speaker 3>to date, So a little bit of profit taking off

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<v Speaker 3>of this news.

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<v Speaker 1>Okay, well, a little bit more positivity, actually, I think

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<v Speaker 1>we could probably say a lot more positivity this morning.

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<v Speaker 1>Away from the tech trade. Cracker Barrel get in a

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<v Speaker 1>bid this morning.

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<v Speaker 3>Shares are up eight percent and we haven't had a

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<v Speaker 3>chance to talk about this company. But it was a

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<v Speaker 3>fun story to cover. It was right, It was an

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<v Speaker 3>absolutely amazing story to cover. Even President Trump got involved.

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<v Speaker 3>So for those of those who those of you who

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<v Speaker 3>haven't been listening faithfully for months, and I'm sure that's

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<v Speaker 3>very few people. Yeah, Cracker Barrel last year basically tried

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<v Speaker 3>to rebrand its company. It moved away from its old

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<v Speaker 3>timing aesthetic, tried to do a logo rebrand, and a

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<v Speaker 3>lot of people rebuilt, including President Trump, who urged the

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<v Speaker 3>company to change the logo back it eventually did. Now,

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<v Speaker 3>Cracker Barrel is looking to embrace Americana. It launched an

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<v Speaker 3>American heritage line that includes a shirt with eagles and fireworks.

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<v Speaker 3>The company also has a collection tied to the two

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<v Speaker 3>hundred and fifty fit two hundred and fiftieth aniverse Reviews

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<v Speaker 3>and independence that the CEO said was selling out fast.

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<v Speaker 3>Those shares are turning around eight percent. It's starting to

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<v Speaker 3>show up in the earnings report, which the company released

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<v Speaker 3>last night. Store traffic is still fading, but declines have

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<v Speaker 3>gotten less steep, and the company is raising its full

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<v Speaker 3>year sales guidance to around three point three billion dollars

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<v Speaker 3>in that top Wall Street estimates.

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<v Speaker 1>Okay, just time to give us a preview of Oracle

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<v Speaker 1>earnings before we hear from them this afternoon. How are

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<v Speaker 1>the stock doing this morning?

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<v Speaker 3>Down three percent? And this is on the back of

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<v Speaker 3>a general selloff, so three percent down in general tech

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<v Speaker 3>is getting hard hit hard today. But you're right, Oracle

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<v Speaker 3>is reporting after the bell. Wall Street is watching to

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<v Speaker 3>see how quickly the company can get massive AI data

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<v Speaker 3>centers built. Cloud infrastructure sales are projected to rise about

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<v Speaker 3>ninety percent. That will be a key area to watch.

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<v Speaker 3>The total cloud segment is expected to bring in ten

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<v Speaker 3>billion dollars of the nearly seventeen billion dollars of sales

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<v Speaker 3>expected for the quarter. This is going to be a

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<v Speaker 3>read on how this AI infrastructure plays playing out.

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<v Speaker 2>This stockmovers report from Bloomberg Radio check back with us

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