Key insights
- Broadcom is expanding its deals with Google and Anthropic to develop TPUs and AI chips, which is viewed positively by analysts. Intel is joining Musk's Terafab AI chip project. These developments signal continued investment and growth in the AI and semiconductor sectors, potentially boosting related stocks.
Market Catalysts host Julie Hyman takes a look at some of Tuesday morning's trending tickers and stories.
Shares of health insurers, including UnitedHealth (UNH), Humana (HUM), and CVS (CVS), are soaring on news that the government will increase private insurer reimbursements by 2.48%.
Broadcom (AVGO) is expanding its deals with Google (GOOG, GOOGL) and Anthropic (ANTH.PVT).
Intel (INTC) is set to join Elon Musk's Terafab artificial intelligence (AI) chip project with Tesla (TSLA), SpaceX, and xAI.
Now time for some of today's training tickers. We're watching health insurers Broadcom and Intel.
We start with managed care companies, which have been battered this year, but they got some good news from the centers for Medicaid and Medicare Services that the 2027 rate increase that is planned for these reimbursement rates will be 2.48%. That'll be the increase.
Now, the prior announcement in January, the preliminary increase had been flat, no change. And there have been some analysts who had predicted, oh, maybe they'll get actually a one to one and a half percent gain, but this nearly two and a half percent rate increase seems to be better than what most in the industry were anticipating.
It would represent about $13 billion in additional payments to these companies which rely heavily on this source of income. So you can see a bounce back. all of these stocks are down for the year by the way. Um most of them down by at least 10% or so, if not much more.
So a bounce back on this news today. Next up, let's take a look at Broadcom, the contract chip manufacturer higher today.
Now the company had discussed in the past partnerships with uh with Google and uh with Anthropic. It gave more details in a filing after the close yesterday about these long-term agreements to develop Google's TPUs, their tensor processing units, um and they're also going to be working with Anthropic on these types of chips.
Most analysts pretty positive on this news. Vivek Arya for example over at Bank of America said that these announcements significantly increase Broadcom's visibility as a longer-term main design partner for TPUs and also remove some stock overhang because uh Alphabet had planned to produce some of these chips itself.
So this now is good news for those Broadcom shares. We're also continuing to watch the Alphabet shares themselves as well. and this announcement coming at the same time that Anthropic is announcing um a I believe a $30 billion annual revenue run rate. Uh so we're seeing those Broadcom shares up by 3%. obviously Anthropic not yet publicly traded.
And then finally we're looking at Intel as well. Um Intel um inking a new partnership with Terrafab.
Now, this is Elon Musk's partnership or project, I should say, to produce its own chips. Um, his companies now design their own chips, but they don't actually make them. He is working on changing that and Intel saying today it's going to help uh those companies, Tesla, SpaceX and XAI, what they call to refactor um their technology in a chip factory to actually manufacture these chips.
So Intel shares are up about two and a half percent.
And we should mention by the way as we look whether it's Intel or Broadcom, the tech broadly is down today. So these stocks are bucking that trend.