Super Micro Extends Gains, CoreWeave Beats, Cisco Rises

On this episode of Stock Movers:

- Super Micro Computer (SMCI) shares extended their gains after Saudi Arabia-based data center company DataVolt signed a multi-year partnership agreement with the beleaguered US server company. The stock has rallied about 43% this week, on track for the best week since November. The agreement should “fast-track delivery of ultra-dense GPU platforms and rack systems for DataVolt’s hyperscale AI campuses in the Kingdom of Saudi Arabia and the US,” the company said in a statement on Tuesday.

- CoreWeave (CRWV) shares are up as their expectation-topping results in its first earnings report indicated artificial intelligence investment showed no signs of waning to start the year. The shares surged as much as 8% in post-market trading.“Demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications,” Chief Executive Officer Michael Intrator said in the statement. “We are scaling as fast as possible to capture that demand.”

- Cisco (CSCO) shares rose in extended trading as the company gave a solid forecast for revenue in the current quarter, a sign the largest seller of networking gear is benefiting from demand for systems using AI technology. Sales in the period ending in July will be $14.5 billion to $14.7 billion, Cisco said in a statement Wednesday. Analysts polled by Bloomberg had predicted $14.5 billion on average. Profit, excluding some items will be as high as 98 cents a share, compared with an average analyst estimate of 95 cents.

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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 (00:17):
Let's take a look at some stocks on the move today.
I'm Tim Stenebek along with Carol Master, and we're joined
by Bloomberg News acat's reporter Carmen Reinicky, Carmen, You've got
a lot to choose from when it comes to movers today.
I know super Micro is on your radar.

Speaker 3 (00:30):
Yeah, super Micro is my top stock and also the
top stock on the S and P five hundred. Today,
ticker SMCI shares jumped sixteen percent, the highest since February
twenty six. The company signed an agreement with Saudi Arabian
based data center Data volt for a twenty billion, multi
year partnership. Bloomberg Intelligence analyst Blujinho said that this partnership

(00:56):
reinforces the view of the company's solid strategic position in
AI servers amid mounting competition.

Speaker 1 (01:03):
Stock's been on a tear too like this week.

Speaker 4 (01:05):
I think a bam people moving into it in a
big way.

Speaker 3 (01:10):
YEP and other chip stocks today also moved sort on
this news and all sort of the positive stuff coming
out of partnership. So Nvidia, AMD, all of these companies
were up all.

Speaker 1 (01:20):
Right, everybody who's watching Core We've very closely. This is
a company that ipo'ed just in the past couple of months,
and it was looked at, hey, are we going to
see a return to IPOs? How's it doing well?

Speaker 3 (01:31):
I mean we also had e Toro today, So today
for IPOs, so shows of corweeb are up about nine
percent right now, and after hours trading, the company reported
its first ever earnings results as a publicly traded company. Basically,
it showed pretty solid results. Adjusted EBITA revenue, operating income
beat Wall Street expectations and basically it just indicated that

(01:54):
artificial intelligence investment is not slowing down. And I mean,
this is this is something that's just really lifting the
tech sector in general, right because this was the big fear,
you know, these companies are going to stop spending and
then we're going to you know, see this hit to earning.
So a really good first showing from Core Weave. The
stock has also been on as hair this year. It
ended the day at a at a record high.

Speaker 4 (02:16):
Yeah, and I just want to point out since you
talked about the AI trade. Right, we saw Cisco in
the aftermarket come out with earnings and the stock popped
three four percent in the aftermarket, and a lot of
it had to do with some of the spending that
they are seeing in terms of a high what it says,
positive sales forecast after AI booies demand AI.

Speaker 1 (02:37):
The trade is backed, Tim Well, I know Cisco is
one of the stocks on Carmen's as well. Start he thunder. Sorry,
it's my arms, Carol Massa where I'm like, what are
you doing?

Speaker 3 (02:46):
I thought it was just up sorry an expert transition,
but no, you're totally right. I mean AI spending is
you know, it's still coming, It's still happening. Cisco boosted
both its current quarter revenue forecast and full year revenue forecast.
And I mean this was the earnings you know, like
season where we were supposed to see all this cut right,
like that was the fear. So this bodes really well

(03:07):
for the AI trade. And I think worth noting that
we have in video in.

Speaker 4 (03:11):
Two weeks, yeah, right, will be another one. It's kind
of fascinating because I just feel like we were backing
off that AI trade, but we got some like throughout
the earning season, right, some support that stuff's going on
should point out to Cisco. It sounds like some changes
in the c suite, the CFO stepping down and making
some changes there.

Speaker 1 (03:29):
So yeah, May eighth, four to twenty pm video Let
the countdown began.

Speaker 4 (03:34):
At it in Vidia close today.

Speaker 1 (03:36):
That's when I hear from Nvidio and Vidia finished up
by more than four hundred billion market cap added.

Speaker 4 (03:40):
I mean that one too, Like what I mean we're
looking at Wait, let me just pull up the numbers.
I mean, it's been on a tear.

Speaker 1 (03:47):
Also, and Jensen was in Saudi Arabia yesterday. He was
called out by the president. Yeah he was.

Speaker 4 (03:55):
Yeah, it's a sixteen percent this week and only Wednesday
Lemon year today shares a flat.

Speaker 3 (04:01):
Yeah, I know that, I'd mean, but yeah, a big
resurgence back into this trade. I mean, it's its valuation
has gotten so compressed. I think it's trading at like
thirty times earnings now, which is a huge discount if
you look over the last two years. So it's really
interesting to see sort of the air come back into
the tires here. And yeah, I'm excited for me. Twenty eight.

Speaker 2 (04:21):
The Stock Movers report from Bloomberg Radio. Check back with
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