Deals Drive Chip Stocks; SMCI and Burberry Rally

On this episode of Stock Movers:
- Nvidia (NVDA) is higher this morning after the Trump administration cleared a path for Saudi Arabia and the United Arab Emirates to pursue their artificial intelligence ambitions, with US tech companies like Nvidia and AMD planning to spend billions of dollars in the region.
- UnitedHealth Group (UNH) is up this morning, reversing yesterday's significant downswing. It's seeing a rebound after news the company replaced its CEO, Andrew Witty, with former CEO Stephen Hemsley, and suspended earnings guidance, citing unexpected medical costs and challenges with its Medicare strategy.
- Super Micro Computer (SMCI) is on the upswing this morning following Tuesday's 16% rally, after Saudi Arabia-based data center company DataVolt signs a multi-year partnership agreement with the beleaguered US chipmaker.
- Burberry (BURBY) shares jumped as much as 16% after the British luxury group’s fourth-quarter retail sales beat estimates, sparking hopes among analysts that its strategic plan could bear fruit and the company is seeing the early signs of a turnaround. Burberry also plans to cut almost a fifth of its workforce, affecting up to 1,700 roles, to achieve an additional £60 million of savings in the next two years.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios podcasts, radio News, The Stock Movers podcast,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg Data.

Speaker 2 (00:17):
Busy economic day for stock movers, of course you've got
to take a look at that. I'm Tom Keene with
Well Sweeney and Lisa Mateo with us with the Stock Movers. Lisa,
what do you have?

Speaker 3 (00:27):
All right? So we're starting with Nvidia because that's leading
the mag seven stocks before the bell, a big part
of the equity rally over the past month, and video
serves more than thirty five percent. But the big news
is at Saudi Arabia the UAE. They are set to
win wider access to advanced AI chips. So in video
they're such as supply chips to Saudi Arabian AI company
Humane for a massive data center project. And Video shares

(00:51):
have been up as much as just about three percent
before the bell, but the deals they're all taking shape.
President Trump visits the Middle East, who's also seeing a
push though from it. This expansion is super micro Computer.
Their shares have been up as much as fifteen percent
before the bell. This is even after a big rally
they had yesterday Saudi data center company data Vault. They
signed a multi year partnership with the company, so data

(01:14):
Fault saying it's it's valued at about twenty billion dollars. They're
saying it's going to deepen the ties between the two companies,
this commitment to AI data center solutions on top of it,
what else do you okay? So where we are seeing
a turnaround this morning? This is United Health. Their shares
fell eighteen percent yesterday, shaved about sixty one billion dollars
off its market value. It's CEO suddenly stepped down for

(01:35):
what he called personal reasons. The company pulled its full
year guidance. A big part of the reason why the
Dow was lower yesterday was because of this. It was
once regarded as safe bet for.

Speaker 1 (01:44):
Investors, safe book.

Speaker 3 (01:45):
Yeah it was, and that was That's what are already saying.
So before the Bell's shares have been higher. So it's
starting to see a rebound. We're up as much as
three percent. The new ceo, it's actually the former CEO,
Stephen Hemsley. He's getting a one time sixty million outer
equity award on top of the one million base salary.

Speaker 2 (02:03):
So it's trading should be polite. It twelve times right,
p is twelve Yep, that's amazing.

Speaker 3 (02:11):
Exactly all times exactly, Big Big yesterday, Oh most definitely
and Ho's and come back to is Burbery. Their shares
up as much as fifteen percent in London, so it
beats sales estimates. The Big News is going to cut
about eighteen percent of its workforce, so on top about
seventeen hundred jobs. Most of the cuts are be office
roles in the UK, but global retail positions will be

(02:33):
affected too. It's new COO. It's really trying to turn
around the company. I mean it's tried this big push
into high fashion. It kind of flop because of slumping
global demand for luxury goods. Trade tariffs have been weighing
on the stock. So what they're doing different to turn
around the company. They're doing these ad campaigns. Have you
seen them with Kate Winslet. They're doing like British celebrities,

(02:54):
trying to do that give that fush. Yes, and they're
moving back to focusing on the trench coats. They're out
of way. You're going back to base, yeah, back to
six instead of the handbags because you don't go for
a burbery handbag. No, that's not what you go for.
You go for the But they've.

Speaker 2 (03:08):
Been fighting that for years and the answer is and
maybe we're gonna see this across all of retail. Let's
talk to Dana Telsea and Joe Felman and others. Oliver
chen yep, I mean, they just got to cut costs.
If it's slow, right.

Speaker 3 (03:21):
Correct, correct, And that's exactly what they're trying to do.

Speaker 1 (03:23):
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