Nvidia H20 Chips; BJ's Earnings; Workday Drops

On this episode of Stock Movers:
- Nvidia (NVDA) shares are after The Information reported, citing unidentified sources, that the company has instructed component suppliers to stop production related to the H20 AI chip. The production suspension comes after Beijing urged local companies to avoid using the H20, a chip designed specifically for the Chinese market. CEO Jensen Huang said he was surprised by Beijing's concerns and reiterated that the H20 houses no security backdoors, according to Huang.
- BJ's Wholesale (BJ) fell after it reported fiscal second-quarter sales that came up short of expectations. The profit outlook for the wholesale retailer did improve. It boosted its adjusted earnings per share forecast for the full year.
- Ross Stores (ROST) jumped after projecting inflation will push more consumers to seek its off-price wares and deliver sales growth above expectations. CEO Jim Conroy said, “We anticipate pricing across retail will move higher as we progress through the year, which will lead consumers to seek more value this fall season.”
- Workday (WDAY) shares are lower after investors were left disappointed that the human-resources software company left its subscription revenue guidance unchanged, apart from a small boost from the Paradox acquisition. Analysts also flagged concerns around AI displacement continue to linger.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.

Speaker 2 (00:08):
The Stock Movers Report, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:16):
Let's take a look at some stocks on the move today.
I'm Nathan Haker, joined by Bloomberg's Valerie Titel. A lot
of movement this morning for Nvidia following that information report.
Val how's the stock looking this morning?

Speaker 3 (00:30):
Good morning at Navidia is in the pre market in
the red, down one point two percent on the back
of that report that it has told suppliers to halt
production of the company's H twenty chip. That H twenty
chip that was designed specifically for the Chinese market to
comply with Biden era controls. And this is according to
the information its cites unidentified sources that Navidia actually issued

(00:53):
these orders this week after Beijing has urged local firms
to avoid using the We've also seen some other stocks
in Navidia's supply chain trade week as well. TSMC traded
down one point three percent in Taiwan. This is the
main company that Navidia uses to fabricate their chips. On
the flip side, though China chip stocks traded quite positively overnight.

(01:17):
This could broadly be seen as a move by China
to protect its homegrown chip industry. We had the likes
of SMIC jump around seven percent and on the mainland
camber Con jump around fourteen percent, as well as some
other Asian ship stocks that are focused on the homegrown
Chinese market perform very well.

Speaker 1 (01:35):
Yeah, so a lot of read through with the importance
for Nvidia to get into that Chinese market more deeply.
We're seeing a lot of stocks move as well on earnings.
Just got results from BJ's wholesale not being taken too
well by investors this morning.

Speaker 3 (01:53):
Vow Yeah, BJ Hostel, this is the membership only warehouse retailer.
Disappointing mark when it came to comparable sales. Stock fell
as much as seven percent, Nathan, but it has since
paired those gains now just trading down one tenth of
one percent, and that's due to their guidance that came
out just after its tweaked it slightly higher, so that's

(02:14):
helping the stock recover now. It has been a big
week for retail earnings. It's really been a mixed picture.
We did have some positive news when it comes to
ross stores those stocks. That stock is trading up two
point three percent in pre market. The discount retailer, which
projected that inflation will push more consumers to seek its goods,

(02:34):
and that kind of projection seems like was welcomed by
the market. It said that same store sales will grow
to the tune of two percent to three percent a
quarter for the next two quarters, all based on those
US consumers trading down into discount products being more selective
about where they spend as they're nervous about prices climbing
due to terraffs.

Speaker 1 (02:55):
Yeah, you mentioned the mixed picture that we are seeing
from retail. It's kind of looks the same way when
it comes to some of these software companies we're hearing
from as well.

Speaker 3 (03:04):
Yeah, that's right. We did hear from the software company Workday.
This is the hr software company. Those shares are trading
down over five percent. They missed on gross profit, but
also quite interestingly made a second acquisition in the AI space.
They agreed to acquire Paradox to use aichips to help
help climates clients automate their hiring process. On the flip side,

(03:27):
a bit more positive pictures, Zoom Communications they gave a
strong forecast. The stock is up four point eight percent
in pre market. To say, their forecast did suggest that
customers are keen for its expanded suite of products, which
do include some new AI tools such as an AI assistant.
I thought that was funny, Nathan, that maybe next time
you call me up to speak to my assistant first.

Speaker 2 (03:50):
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