Check out the companies making headlines in pre-market trading: Broadcom – Shares of the semiconductor maker jumped nearly 17% after the company's fiscal fourth-quarter earnings beat expectations. Broadcom is developing custom AI chips with three major cloud customers, CEO Hock Tan said. The company also said its AI revenue for the year tripled. RH – Shares of the luxury furniture retailer rose 13% in pre-market trading after the company raised its forward guidance. RH expects fourth-quarter revenue to grow 18% to 20% from a year earlier, citing “accelerating demand.” The company also turned profitable in the third quarter. Tesla – The electric car maker's stock rose 1% after Reuters reported that President-elect Donald Trump's team recommended ending the car crash reporting rule. According to Reuters, Tesla reported most crashes under the software and CEO Elon Musk did not like this requirement. Norwegian Cruise Line – The cruise stock rose 2.6% on the back of Barclays' upgrade to overweight. “We like NCLH given its high beta in an accelerating macro environment, and exposure to transatlantic travel in a year we expect to see strong US demand abroad,” the bank said. Penn Entertainment – The online sports betting stock rose 5.8% after JPMorgan upgraded it to overweight from neutral. The bank said it sees a path for overall growth ahead as Penn Entertainment's capital projects begin to pay off. Ciena – The networking equipment company advanced nearly 2% daily after posting its best performance since August 2023. Shares closed up 15% Thursday after Ciena posted strong revenue for the first quarter and fiscal 2025, though the company fell short of expectations. Wall Street earnings. . On Friday, Bank of America upgraded the stock to Buy from Neutral on the back of stabilizing demand and accelerating cloud and AI momentum. Upstart Holdings – Shares of the lending platform rose more than 4% after an upgrade to buy from hold in Needham. The investment firm said Upstart had “achieved an appropriate funding balance” and strengthened its balance sheet. Centene – The healthcare stock advanced 1.4% on the heels of UBS's upgrade to buy from neutral. UBS described the stock as “too cheap to ignore.” TaskUs – Outsourcing stock rose 6.8% after Morgan Stanley upgraded to overweight from equal weight. TaskUs should be a beneficiary of AI and have “industry-leading” margins and a “competitive moat,” the bank said. Canadian Solar – Renewable energy stock rose 2% after Mizuho started with an outperform rating. Mizuho believes investors have not fully appreciated the value of growth in energy storage. PayPal – Shares of the fintech stock traded 1.8% higher after Wolfe Research upgraded to outperform peers. Wolf said he sees a potential rise in Wall Street estimates. Salesforce, ServiceNow – Salesforce shares rose 2%, while ServiceNow fell 1.1%. The moves come after KeyBanc Capital Markets issued a 2025 stock outlook for enterprise software, upgrading Salesforce to overweight and downgrading ServiceNow to sector weight. Salesforce, which rose this quarter on a series of positive news about its AI products, still has “room for improvement,” the company said. The company said ServiceNow is an “early leader in AI” but has “little upside” at this point. — CNBC's Pia Singh, Michelle Fox, Lisa Kailay Han, Yun Li, Sarah Min and Jessie Pound contributed reporting.
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