U.S. Movers: Cisco, Nvidia, Stellantis, TSMC

Scott Peters
15 Feb, 2024
New York City

Cisco Systems declined 4.7% to $47.94 after the company issued a quarterly and full-year outlook that fell short of some investors' expectations. 

Total revenue in the fiscal second quarter ending in January declined 6% to $12.8 billion, net income dropped 5% to $2.6 billion from $2.8 billion, and diluted earnings per share fell 3% to 65 cents from 67 cents a year ago. 

Overall revenue declined, driven by a 9% fall in product revenue and a 4% increase in service revenue. 

Geographically, revenue in the Americas fell 4%, in Europe and the Middle East decreased 7%, and in Asia Pacific, Japan and China declined 12%.

The company said revenue in the fiscal third quarter is expected to fall between $12.1 billion and $12.3 billion and earnings per share between 51 cents and 56 cents. 

The networking gear maker's chief executive, Chuck Robbins, said in an interview with CNBC that customers are taking longer to work through inventories, and demand from its telecom and cable companies remained weak, with orders down 40% in the quarter. 

Nvidia added 0.1% to $739.35 after Morgan Stanley lifted its price target to $750 from $603, citing continued strength in demand for AI chips. 

TSMC, which makes advanced chips for more than 4,000 customers, including Apple and Nvidia, soared 1.1% to $130.75 after Nvidia's price upgrade. 

TSMC surged 8% to NT$697 and soared as much as NT$709 in Thursday's trading after investors returned from a long holiday celebrating Lunar New Year. 

Stellantis NV, the parent of Chrysler and Jeep, jumped 4.5% to $25.45 after the automaker announced a stock buyback plan of €3 billion. 

Net revenue in 2023 increased 6% to €189.5 billion, and consolidated shipment volumes rose 7% to 6.17 million units. 

Net profit in the year rose 11% to €18.6 billion, and adjusted operating income advanced 1% to €24.3 billion, with an adjusted operating income margin of 12.8%. 

The company's market share in North America declined 130 basis points to 9.4%, with gains in Mexico more than offset by declines in the U.S. and Canada.