Take a look at the companies making headlines in premarket trading: Broadcom – Shares of the semiconductor maker rose nearly 17% after fiscal fourth-quarter earnings beat expectations. CEO Hock Tan said Broadcom is developing custom artificial intelligence chips with three major cloud customers. The company also said AI revenues more than tripled for the year. RH – Shares of the luxury furniture retailer rose 13% in premarket trading after the company raised its forward guidance. RH sees fourth-quarter revenue growth of 18% to 20% from a year earlier, citing “an acceleration in demand.” The company also recorded a profit in the third quarter. Tesla – The electric vehicle maker ticked up 1% after Reuters reported that President-elect Donald Trump's team had recommended ending a car accident reporting rule. According to Reuters, Tesla has reported the most crashes under the program and CEO Elon Musk hates the requirement. Norwegian Cruise Line — Cruise shares fell 2.6% as Barclays upgraded to overweight. “We are positive on NCLH given its higher beta in an increasingly accelerating macro environment and its exposure to trans-Atlantic travel in a year where we expect strong U.S. demand abroad,” the bank said. Penn Entertainment — Online sports betting stocks rose 5.8% after being upgraded from neutral to overweight at JPMorgan. The bank said it sees a path to overall growth as Penn Entertainment's capital projects begin to bear fruit. Ciena – The networking equipment company advanced nearly 2% per day after posting its best performance since August 2023. Shares closed 15% higher on Thursday after Ciena posted strong first-quarter and fiscal 2025 earnings despite the company falling short of Wall Street's earnings expectations. . On Friday, Bank of America upgraded the stock from neutral to a buy, thanks to stabilizing demand and accelerating cloud and AI momentum. Upstart Holdings – Shares of the lending platform rose more than 4% after being upgraded to buy from hold at Needham. The investment firm said Upstart has “achieved an appropriate balance in financing” and strengthened its balance sheet. Centene – Healthcare stocks rose 1.4% following UBS's upgrade to a buy from neutral. UBS called the stock 'too cheap to ignore'. TaskUs — Outsourcing stocks rose 6.8% following Morgan Stanley's upgrade to overweight from equal weight. The bank said TaskUs should be an AI beneficiary and has both “industry-leading” margins and a “competitive moat.” Canadian Solar – Renewable energy shares rose 2% after the introduction of Mizuho with an outperform rating. Mizuho believes that investors have not fully priced in the value of the growth within the energy storage sector. PayPal – Shares of the financial technology stock traded 1.8% higher after Wolfe Research upgraded to outperform comparable performance. Wolfe said it sees potential upside over Wall Street estimates. Salesforce, ServiceNow — Shares of Salesforce rose 2%, while ServiceNow fell 1.1%. The moves come after KeyBanc Capital Markets issued a stock-specific 2025 outlook for enterprise software, upgrading Salesforce to an overweight and downgrading ServiceNow to a sector weight. The company said Salesforce, which has racked up a string of positive news about its AI products this quarter, still has “room for improvement.” The company said ServiceNow is an “early AI leader” but has “little upside” at this point. – CNBC's Pia Singh, Michelle Fox, Lisa Kailai Han, Yun Li, Sarah Min and Jesse Pound contributed reporting.
