SK Hynix Gains, CATL Drops, LIG Defense Falls

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0:08 The Stock Movers Report. Your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg data.

0:16 I'm Caroline Hepker. Joining us now is our markets reporter, Anthony Stephens, to look at some of the stocks that are on the move in Europe. Anthony, good to speak to you. Major tech bounce because of SpaceX and Supermicro. How does that read across into the Asia session? I mean, I've been talking this morning about how the Nasdaq dropped last week 5.5%. There's real worries about AI spending. And yet today, the bounce.

0:42 Why? Traders had been worrying about this AI spending and we got some reassurance from the kind of results that we saw from SpaceX, but also from Anthropix pre-IPO documents, which were kind of reported by the Wall Street Journal. And this speaks to a continued faith in the CapEx trade. So they continue to plow money into CapEx. And SpaceX at least is seeing some return on that investment. That is the part that investors are really latching onto. And you can see from Supermicro's results, how far down the chain they This money is percolating. So across the board in Asia, we are seeing a little bit of a bounce here on the supply chain. Samsung is up almost 5 percent. Hynix is up five and a half percent.

1:24 And a lot of printed circuit board makers across the region are strong in sympathy with Supermicro. For example, Nanya Plastic, which makes the plastic in circuit boards, is up almost 8 percent. And we have Kyokusha and Unimicron also very strong.

1:37 Yeah, that's interesting. Supermicro shares were up 16% after hours of their revenue coming in $ 18. 5 to $ 19. 5 billion. So, huge blowout versus their guidance. Also, President Trump, have you seen these lines from President Trump who's been on social media just in the past few minutes talking about how data centers should make their own electricity and give or sell any excess back to the community, a kind of community dividend fund? And he also wants them to make deals to get on with building. I thought that was interesting. EVs, though, also under pressure from a miss in your region.

2:15 Yeah, so one of the big battery makers in China, Cattle, a contemporary Amperex, is down 11% after its earnings came in soft. What was interesting about those earnings was not the top-line revenue number, which was fine. It's that they're investing so much money into research, and that speaks to the level of competition in the EV space in China.

2:35 as they choose to compete domestically extremely aggressively. And then, of course, in markets like Europe and Latin America, where they're also running into trade struggles. So this market is turning brutally competitive. It's a kind of an interesting macro sign for China, right? Once they figure out the technology, the monetization becomes a little bit difficult because so many competitors rush into the mature technology. So, maybe that's in the path of AI's future. But for now, people are taking money off the table aggressively in the AI space. So, not only is the AI in the EV space, not only is the EV space weak in China, it's feeding down into Kia and Hyundai in Korea as well. Okay.

3:14 And then, defense themes are also struggling. We've been talking about the row, I'll call it a row with Ukraine about access to Starlink.

3:25 Yeah, so Ukraine is also engaged in a little bit of diplomatic tit-for-tat with South Korea. South Korea is angry about a kind of a leak communication, and this just keeps spiraling. And it's impacting the defense names that have been busy selling into Ukraine from Korea. LIG Next being one of them, LIG Defense, that's down 10%. Hyundai Rotem was down around 9% yesterday and follows through today on earnings.

3:50 So we're seeing a slowing in the real earnings around the defense team, especially as the team slows down in the U.S.

3:57 As well.

3:58 And just to circle back to your President Trump comments, it's around one of these midterm teams, right? So defense has been coming off. And he does not want data centers to become another midterm team where an industry is seemingly benefiting at the expense of the wider voters.

4:15 So I think that's very interesting.

4:17 Those two themes are under pressure here from the politics in the U.S.

4:22 The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.