Nvidia Jumps, Coinbase Soars, Super Micro Computer Surges

On this episode of Stock Movers:

- Nvidia (NVDA) shares are surging as the AI chipmaker, along with Advanced Micro Devices, will supply semiconductors to Saudi Arabian artificial intelligence company Humain for a massive data center project, acting under a Trump administration initiative that lifts restrictions on delivering advanced technology to the region. Nvidia Chief Executive Officer Jensen Huang announced the partnership on stage at the Saudi-US Investment Forum in Riyadh, the Gulf nation’s capital. The announcement came alongside US President Donald Trump’s visit to the country. Separately, AMD will provide chips and software for data centers “stretching from the Kingdom of Saudi Arabia to the United States” in a $10 billion project, according to a statement.

- Coinbase (COIN) shares jumped as much as 26% on Tuesday, the biggest intraday gain since Nov. 6 to the highest level since February after S&P Dow Jones Indices said the company will join the S&P 500 Index before trading opens May 19. The company will replace Discover Financial Services in the index prior to the start of trading on May 19, S&P Dow Jones Indices said in a press release. The inclusion of Coinbase is viewed as a vindication by crypto faithfuls who helped President Donald Trump win the election in November.

- Super Micro Computer (SMCI) shares are trading up after Raymond James initiated coverage of the server maker's stock with an 'outperform' rating and a price target of $41.

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Episode Transcript

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

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

Speaker 1 (00:18):
Well, I'm Tim Stanebeck along with Carol Masser. Let's take
a look at some stocks on the move today. We
are joined now by Bloomberg News cross Asset reporter Emily GRIFFEO, Emily,
you got a lot to chew. You had a lot
to choose from in today's session. What caught your eye?

Speaker 3 (00:32):
I did, and I picked like the most talked about
stock on Wall Street, But it moved up a lot today.
I'm talking about shares of Nvidia, the chip company. It
was up as much as six point seven percent after
CEO Jensen Wong announced the company will send semiconductors to
Saudio Arabian AI company Humane for a data center build out.

(00:54):
So data centers. That's a really big area for any
companies focused on AI because you need data centers to
power AI processes. And this is all part of a
Trump administration initiative that lifts previous restrictions on shipping advanced
AI capabilities to the region.

Speaker 4 (01:12):
Just gonna say, right, Jensen, there he announcing it right
at the Saudi US Investment Forum in riod so down
on the ground with the president and some other you know,
top business leaders. But this is that was a pretty
big announcement.

Speaker 3 (01:26):
Yeah, it was. And the Trump administration is, at least
according to Bloomberg's reporting, they plan to overhaul regulations on
the export of semiconductors used in AI. This is a
big win for companies like in video, because they're tossing
out a Biden error approach that had a lot of
objections from US allies and companies, including in video.

Speaker 4 (01:46):
All right, can we talk about.

Speaker 1 (01:49):
You own coinbase, you owned.

Speaker 4 (01:53):
Crypto, you own crypto, you own you know.

Speaker 1 (01:56):
I will say, well, Emily, you go ahead and you
know all annoy Carrol Mas.

Speaker 4 (02:03):
This is definitely one of the mega winners in today's session.
It is mega gainers.

Speaker 3 (02:08):
I guess Coinbase.

Speaker 4 (02:10):
If you were shorting it, you didn't feel like you're
a winner.

Speaker 3 (02:12):
No, But if you were long it, or if you're
trying to get in on the trade before it's actually
added into the S and P five hundred, you made
some money today. The stock was up finished the day
up twenty four percent. It was announced after the close
yesterday that this company's being added to the S and
P five hundred index, the world's arguably most famous index.

(02:32):
This is the first crypto company to be added to
the SMP so it's a big milestone all of the
Coinbase execs. Brian Armstrong, he kind of tweeted like a
victory lap, so go look at his tweets on Twitter
or x. But yeah, this is a lot of what
we're seeing now is what traders call the index effect.

(02:53):
So they anticipate that passive funds that have to track
the S and P five hundred closely will actually have
to buy the stock on the date gets added to
the index. That's not for another week, so a lot
of hedge funds arbitragers will try and buy the stock
before that, anticipating that there'll be a lot of buying
in a week.

Speaker 4 (03:10):
I mean, prior to this, the stock was down a lot.

Speaker 3 (03:13):
Yeah. Yeah, it's been like it's been kind of a
wild ride for crypto this year because like these companies
were supposed to do really well after Trump won the election.
They obviously now are with this stock up a lot
and being added to the S and P five hundred,
But it was not a straight line up.

Speaker 1 (03:33):
It hasn't been like an I'm just looking at the
forever chart. Yeah, going back to twenty twenty one, a
hard chart maybe even goes back to all the way
to yeah, even yeah, the early twenty twenty one. Yeah,
it's still twenty eight percent off of the all time
highs that it reached back in November of twenty twenty one.

Speaker 3 (03:52):
Yeah, it depends how you look at it, because over
the last two years it's up something like two hundred
and seventy percent depending on when you got in. It's
just one of the.

Speaker 4 (04:00):
Plice at different points, right and get a different picture.
Let's talk about super micro because that also serves in
today's session.

Speaker 3 (04:07):
Yes, so that stock was up at least over eight
percent at one point on the day. I'm just getting
that to load. Yeah, I'd actually finished the day up
sixteen percent. They had an outperform rating at Raymond James,
so they initiated coverage at Raymond Jane. The broker said
super microcomputer has emerged as a market leader in AI

(04:28):
optimized infrastructure. I mean, that's kind of all you really
need to hear. All in, they set a price target
of forty one dollars, which now with today's rise, it's
pretty close to that. So maybe Raymond James is going
to have to come back and up that price target
because now the stock is at like almost thirty nine dollars.

Speaker 2 (04:48):
The Stock Movers podcast from Bloomberg Radio. Check back with
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