Stocks Rise After AI-Fueled Selloff Ahead of Nvidia Earnings | Closing Bell
Speakers
Summary
- Markets rebounded ahead of Nvidia earnings, with the S&P 500 up ~0.8% and Nasdaq up ~1%, driven largely by AI hardware and infrastructure plays.
- A clear divergence is emerging in the "AI Trade": Hardware/Infrastructure providers (AMD, KEYS) are surging on demand, while Enterprise SaaS (WDAY) is being punished for guidance misses and fears of AI displacement.
- The GLP-1 duopoly (NVO/LLY) showed weakness following Novo Nordisk's decision to slash Wegovy list prices by 50%, signaling potential margin compression and pricing wars.
- Capital intensity remains a headwind for legacy tech; Texas Instruments sold off on news of sustained high capex for domestic manufacturing.
Trade Ideas
Bitcoin is heading for its worst month since June 2022, hovering around $64k. The momentum trade has paused. The reference to "worst month since collapse" suggests a potential sentiment shift or exhaustion of the ETF-driven rally. WATCH (Trend Break). Sudden liquidity injection or macro shift sends crypto higher.
AMD rallied nearly 9% (top gainer in Nasdaq 100) on news that Meta Platforms is buying AMD chips and explicitly buying AMD stock. This validates AMD as a viable alternative to Nvidia for hyperscalers. Meta's endorsement reduces the "single-source" risk for investors and confirms strong demand for AMD's MI300 series. LONG (Momentum/Validation). Nvidia earnings (tomorrow) could suck all oxygen out of the room if they guide massively higher, making AMD look like a distant second again.
Thomson Reuters stock rose 11.5% (biggest gain in 17 years) after announcing 1 million users for its AI legal tool ("Co-Counsel") and a partnership with Anthropic. Unlike general SaaS companies fearing displacement, TRI owns proprietary, high-value legal data. By successfully integrating AI (Anthropic's Claude) to monetize this data, they are proving they are an AI beneficiary, not a victim. LONG (AI Execution). Valuation expansion outpacing actual revenue contribution from AI tools.
Novo Nordisk plans to slash U.S. list prices for Wegovy by up to 50%. Both NVO and Eli Lilly traded lower. The "unlimited pricing power" thesis for weight-loss drugs is cracking. Political pressure (Biden speech mentioned) and competition are forcing price compression, which threatens the sky-high margin assumptions baked into these valuations. SHORT (Margin Compression/Pricing War). Volume increases from lower prices could offset margin declines (elasticity of demand).
Tim Stenovec
Anchor/Co-Host, Bloomberg TV & Radio
Whirlpool stock fell ~14% after launching a public offering of common shares and depositary shares. Equity issuance is an immediate dilution of existing shareholders and signals liquidity stress or a need to shore up the balance sheet. The market interprets this as a sign of weakness in the core business. AVOID (Dilution). If capital is used for a highly accretive acquisition (unlikely given the context).
Carol Massar
Anchor, Bloomberg
Keysight Technologies surged 23% after beating earnings and forecasting strong Q2, citing "booming AI workloads." This is a "pick-and-shovel" play. You cannot deploy massive AI clusters without testing and measurement equipment. As hyperscalers spend billions on hardware, Keysight captures the downstream spend regardless of which chipmaker wins. LONG (Earnings Beat/Sector Tailwinds). Cyclical downturn in general electronics testing outside of AI.
Tim Stenovec
Anchor/Co-Host, Bloomberg TV & Radio
Workday stock fell ~7-8% in after-hours despite an EPS beat. Guidance for subscription revenue and operating margin came in below Street estimates. The market is hyper-sensitive to "AI Displacement" risk in software. Even though management claims they are embracing AI, a guidance miss reinforces the narrative that AI might reduce headcount (Workday's core metric) or that seat-based pricing power is fading. SHORT (Guidance Miss/Narrative Headwind). Management clarifies AI monetization strategy on the call, reversing sentiment.
Tim Stenovec
Anchor/Co-Host, Bloomberg TV & Radio
Texas Instruments fell ~3% after announcing capex will remain elevated ($2B-$3B/year) to bring manufacturing in-house. High capex depresses free cash flow in the short term. While strategically sound for supply chain security, the market prefers capital-light models or immediate returns (buybacks) over long-term infrastructure builds. SHORT (Capital Intensity). Long-term margin expansion if internal manufacturing lowers unit costs significantly.
Romaine Bostick
Anchor, Bloomberg
Lucid reported a wider-than-expected loss. Shares down 6-7% in after-hours. Despite a revenue beat, the company continues to burn cash with no immediate path to profitability. In a high-rate environment, unprofitable EV manufacturers are "show me" stories, and Lucid failed to show margin improvement. SHORT (Cash Burn/Unprofitable). A massive capital injection from Saudi backers (PIF) could squeeze shorts.
Up Next
This Bloomberg Markets video, published February 24, 2026, features Carol Massar, Tim Stenovec, Romaine Bostick discussing BTC, AMD, TRI, NVO, LLY, WHR, KEYS, WDAY, TXN, LCID. 9 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Carol Massar, Tim Stenovec, Romaine Bostick · Tickers: BTC, AMD, TRI, NVO, LLY, WHR, KEYS, WDAY, TXN, LCID