China probes Texas Instruments, CoreWeave & Nvidia, Union Pacific

Yahoo Finance Senior Reporter Allie Canal sits down with Market Domination Host Josh Lipton to discuss some of the top stories, including China's anti-dumping probe into US semiconductors like Texas Instruments (TXN), CoreWeave's (CRWV) cloud computing deal with Nvidia (NVDA), and Citi upgrading Union Pacific (UNP).

To watch more expert insights and analysis on the latest market action, check out more Market Domination.

Video Transcript

00:10 Josh

Uh now time for some of today's trending tickers. Yahoo Finance's Allie Canal. Join me now for a look at Texas Instruments. We'll look at Core Weve and maybe a little Union Pacific. Let start with Texas Instruments. Those shares sliding as China launches an anti-dumping investigation into analog integrated circuit chips. So this one, I mean there was a few different chip headlines today, Al. So we had China saying Nvidia violated uh anti-monopoly laws. That was after the acquisition of

00:41 Josh

Mellanox. That was that was actually kind of a surprise announcement. I I think, you know, some reports noting, listen, um China perhaps just trying to show some leverage here, tried some show some weight around with the with the tariff talks going on in Madrid. Then also though, China did launch this anti-dumping investigation targeting reports known a kind of semiconductor made by American companies and that did include Texas instruments and you saw the stock react.

01:13 Allie

Right, and Texas Instruments was named directly here in this anti-dumping probe. You're seeing those shares down around 3% in afternoon trading. And these are the chips that help power everyday electronics like smartphones, like cars. So these are very important in the chip ecosystem. And like you were saying, Josh, I mean, this adds to a lot of the tensions that we've been seeing between the U.S. and China as talks continue. The two sides still negotiating, still at that table. China is one

01:48 Allie

of our largest trading partners and investors have really been waiting for this deal to materialize. President Trump saying he will be meeting with Xi Jinping on Friday. We do have that deal with TikTok, which uh had a ramification across Wall Street as well with Oracle shares rising on the heels of that news. But Texas instruments, the stock has been struggling in general, down about 5% this year. We're trading about 20% below some of the highs that we saw earlier this summer. And management

02:22 Allie

recently warned that chip demand isn't bouncing back as quickly as hoped. So even though we talk about the biggies like Nvidia, like some of those other chip makers. This is this is a sign that there are some companies out there that are struggling and once again, China just seems to be at the the core of a lot of these pain points for these chip companies.

02:45 Josh

For sure. All right, turn to Core Weve. Let's look at that one as well because those shares getting a lift as the company discloses an order worth at least $6.3 billion from Nvidia. So this one, Allie, Core Weve saying okay, Nvidia has agreed to buy cloud services valued at around $6 billion. Uh this deal, it sounds like per reports, first announced April 2023, runs through 2032. Uh Core Weve was on the move today. Of course, this one we talk a lot about. I mean, look at that move. 8%. It's nearly

03:26 Josh

tripled, it looks like, since the IPO.

03:32 Allie

Yeah. Over 20, 200% since the IPO. You're seeing shares up 8% today. like you were saying this locks Nvidia in as a guaranteed buyer of any of that unused cloud computing capacity through 2032. And that gives Corby both the stability and the validation that they will have Nvidia as a key partner here in this AI infrastructure race. Deutsche Bank also added the stock to its catalyst buy list, saying that demand for AI data centers still far outstrips supply.

04:11 Allie

And that's something we've been hearing from a lot of Wall Street strategists over the past few weeks, the past few months, certainly after this latest earnings season, that narrative alive and well. C was on public earlier this year and like Josh, you were just saying, I mean, the run-up here has been astronomical, definitely one of the hottest IPOs this year.

04:35 Josh

Yeah, most on the street now at a hold on this one, in part perhaps because of that rocket ship of a run-up. All right, lastly, let's go to Union Pacific as City upgrades that one to buy, hiding more clarity on its merger with Norfolk Southern. So City likes this one, Ally. Risk reward too compelling to ignore on the railroad company, they say. They talk about strong operating execution, which they say bodes well for Q3 earnings and the likelihood of integration success, assuming deal approval. Stock up about half a percent, about a half a percent it look like today.

05:21 Allie

Yeah, so the regulatory path forward for this merger with Norfolk Southern, less uncertain than it did before. This is the argument that city is making, boosting the odds of that approval. But even if the merger does not happen, City did say that the valuations look attractive at this point. It's trading at a discount compared to some of those peers and the broader S&P 500, while still continuing to execute operationally. You are seeing shares up modestly today. Year to date, we are down around

05:54 Allie

5%. So again, uh maybe some opportunities there for investors to get in at this lower valuation. As we look across the railroad space and continue to track some of these mergers within this uh industry in general. And and it seems like right now the odds of this merger going through, at least for the time being, they're rising and that's being reflected in some of this optimism on Wall Street.

06:23 Josh

Yeah, stock in the red this year, but City says that is an opportunity. All right, thank you, Allie.

06:27 Allie

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