Samsung to Make Tesla AI Chips, Nike Upgrade, PayPal Rises

On this edition of Stock Movers:

- Samsung (SSNHZ) shares are surging after the company will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division. South Korea’s largest company announced on Monday that it secured the 22.8 trillion won chipmaking agreement, which will run through the end of 2033. The plan is for an upcoming plant in Taylor, Texas, to produce Tesla’s next-generation AI6 chip, Tesla chief Elon Musk said on X, confirming a Bloomberg News report. Samsung’s Seoul-traded shares rose 6.8% to their highest since September, while its suppliers like Soulbrain Co. jumped 16%. Tesla’s stock rose more than 1% in early US trading. A Samsung spokesperson declined to comment, citing confidentiality terms in its contract.

- Nike (NKE) shares are gaining today after JPMorgan upgrades to overweight from neutral, citing the earnings impact of the sportswear maker’s five-pronged multi-year recovery plan. JPMorgan analyst Matthew Boss notes that the recovery path will equate to positive earnings-per-share growth in the high teens to 20% through to the 2030 full-year. The recovery plan includes global inventory alignment to sales growth, accelerating momentum within global wholesale order books and 2H 2026 anniversary of about $500 million of accelerated and incremental sales-related reserves.

- PayPal (PYPL) shares are up today. The company will soon allow businesses to accept more than one hundred cryptocurrencies at checkout. The option is going live in the coming weeks and will allow merchants to accept crypto such as Bitcoin, Ethereum, Tether’s USDT and Circle’s USDC, from wallets including Coinbase, OKX, Phantom, MetaMask and Exodus. When a consumer pays with crypto, the funds are automatically converted into fiat or PayPal’s PYUSD stablecoin for deposit in the merchant’s account. “You have globally 650 million users that participate in the $3 trillion market of cryptocurrencies,” said Frank Keller, general manager of large enterprise and merchant platform at PayPal, in an interview with Bloomberg. “We wanted to give small businesses access to this customer base that is growing.”

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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 3 (00:16):
Carol Master along with Tim Stenevieck. So let's get to
some stocks on the move. Bloomberg News Equities reporter Alexandra
Semenova is with us. Everybody's talking about Samsung.

Speaker 4 (00:26):
Yeah, one of the big stories of today. Samsung Electronics
will produce AI chips for Tesla and a sixteen point
five billion dollars deal. Samsung, which is of course South
Korea's largest company, set today that the deal will last
through twenty thirty. The plan is for an upcoming plant
in Taylor, Texas to produce Tesla's next generation AI six chip.

(00:47):
Tesla CEO Elon Musk tweeted about this, essentially confirming scoop
by Bloomberg. On this announcement, Musk describe the value of
the deal as just the bare minimum. He said that
actual output will likely be several times higher than most
people expect, and this is also sending ASML and other
European semiconductors higher today, gaining given the fact that Samsung

(01:09):
is their key customer.

Speaker 3 (01:10):
Yeah, I looked at the socks. Most names are higher
today and the socks is up easily, autperforming the broad
A market up ab at one point five percent.

Speaker 1 (01:18):
And Tesla up about three point seven percent as we speak. Yeah,
really good day for Tesla. Okay, so Nike.

Speaker 4 (01:25):
Also a good day for Nike. It is climbing today,
also up three point eight percent right now, after an
upgrade from JP Morgan to overweight from neutral. Analysts they're
citing the cited the earnings impact of their multi year
recovery plant. Matthew Boss, one of the analysts. They're expects
that plan to generate positive earnings per share growth in
the high teens to twenty percent through twenty thirty. The

(01:49):
recovery plan includes things like global inventory alignment and a
pickup and momentum within global wholesale order books. JP Morgan
also lifted its price target on the company to ninety
three dollars from sixty four dollars. That's about a twenty
two percent increase from Friday's close. He saw optimism there.
Just buy it, just buy it.

Speaker 1 (02:07):
Just to see what you love.

Speaker 4 (02:09):
Sell side research that always so catch infringement, so.

Speaker 1 (02:14):
Says the analyst. Just buy it.

Speaker 3 (02:16):
It's really cute. PayPal ticker's p ypl. What's going on there?

Speaker 4 (02:21):
Yeah, this is pretty interesting announcement here. PayPal will soon
soon allow businesses to accept more than one hundred different
cryptocurrencies at check out. The option is going to go
live in the coming weeks. That'll allow merchants to accept
cryptos such as Bitcoin, ethereum, Tether's us d T and
circles us d C from walts including Coinbase and others.

(02:41):
So basically, when a consumer pays with bitcoin, it'll automatically
convert into you know, currency and into PayPal's stable coin
to be deposited into the merchant's account.

Speaker 3 (02:53):
Feels like it's happening. Time to get that crypto wallet, yeah, right,
all of a sudden, Yeah, cryptos storing accessible such a
jet right, and they said that.

Speaker 1 (03:04):
The crypto detailing crypto people are some payment any diamond.
The crypto people are buying the jet get flights.

Speaker 4 (03:12):
Yeah, just like even all the naysayers are now on
board with it.

Speaker 3 (03:17):
It's really kind of fascinating to see that good stuff.
As always, Hey, you have a story in the Bloomberg,
just give us thirty seconds on it. I think I've
been quoting NonStop from it.

Speaker 4 (03:26):
Yeah, so it's obviously a really big week. I call
it the super Bowl for traders this week, given all
of the data points that we have coming up. We
have a rating on GDP, we have non farm payrolls,
we have riddings on inflation and manufacturing. This comes alongside
a FED decision, we have Donald Trump's self and post
tariff deadline, and of course big tech earnings. So it's
really going to be a make or break week for markets. Obviously,

(03:49):
evaluations are back to February levels, trading at twenty two
times earnings on the S and P five hundred, so
any kind of disappointment could really cost some volatility here.
What's interesting though, the vics last time I was still
around fifteen, so not a lot of people hedging for
a really consequential week.

Speaker 2 (04:06):
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