CNBC's "Fast Money" Summary – Episode Airing May 13, 2025

Introduction

Hosted by Dominic Chu from CNBC's Studio B at the NASDAQ Market Site in Times Square, the May 13, 2025 episode of "Fast Money" featured insightful discussions with a panel of top traders, including Tim Seymour, Bono & Ison, Carter Wirth, Guy Adami, and guest experts Christina Parts and Sarah James. The episode delved into the latest market trends, significant stock movements, and broader economic indicators affecting investors.

1. Semiconductor Sector Surge

Overview The episode kicked off with a focus on the booming semiconductor ETF (SMH), which has surged over 22% in the past month, led by notable gains from Micron, Texas Instruments, Broadcom, and Nvidia. This upward trend is further bolstered by a significant $600 billion investment by Saudi Arabia, aiming to pivot towards AI and advanced technology.

Key Insights

• Nvidia’s Growth: Nvidia has skyrocketed, approaching the $3 trillion market cap milestone, bolstered by strategic meetings with Saudi Arabia’s Crown Prince Mohammed bin Salman and collaborations with industry leaders like Jensen Huang and Lisa Su ([Dominic Chu, 01:04]).

• Interest Rate Concerns: Despite the robust market gains, the 10-year Treasury yield has climbed back to 4.5%, a level not seen in over a month, raising concerns about inflation and market focus ([Dominic Chu & Guy Adami, 02:51]).

Notable Quotes

• Guy Adami ([03:11]): "In an environment where inflation is seemingly decreasing, yet 10-year yields continue to rise, investors should refocus on yield movements rather than just the S&P performance."

• Tim Seymour ([04:31]): "The semiconductor leadership is extraordinary. Even industrial chips like Texas Instruments and Micron have had a great renaissance, and Nvidia is outperforming semis, which is exactly what you want to see."

Expert Commentary

• Christina Parts: Highlighted the strategic shift allowing Nvidia to ship advanced chips to Saudi Arabia without US export licenses, positioning the company to benefit significantly by 2026-2027 as production ramps up ([Christina Parts, 08:08]).

• Carter Wirth: Advises caution, suggesting that while semis are currently a market leader, hedging or trimming longs may be prudent due to their cyclical nature ([Carter Wirth, 05:42]).

2. UnitedHealth Group’s Stock Plunge

Overview UnitedHealth Group (UNH) experienced a dramatic 18% drop following the unexpected resignation of CEO Andrew Witte and the suspension of annual guidance. The stock has nearly halved since the tragic death of its insurance unit CEO in December.

Key Insights

• Operational Challenges: The primary driver behind the stock decline is a margin issue with Medicare Advantage, affecting both individual and group accounts ([Janice Henderson, 12:32]).

• Management’s Response: Stephen Hemsley, a seasoned executive with a successful history in Medicare turnarounds, has taken over as CEO with plans to stabilize and grow margins in key segments ([Janice Henderson, 13:14]).

Notable Quotes

• Janice Henderson ([13:36]): "This stock outside of 2008 has not traded this low. It's a diversified model with businesses set to enter margin expansion, offering over 30-40% upside potential."

Expert Commentary

• Tim Seymour: Emphasizes that UnitedHealth is now priced attractively, with P/E ratios around 12-13 times, suggesting significant upside as the company stabilizes ([Tim Seymour, 15:15]).

• Carter Wirth: Contrasts UNH’s situation with Boeing, noting that UNH's decline is more speculative and less about finding a stable base ([Carter Wirth, 16:26]).

3. Boeing’s Strong Performance Amid Recovery

Overview Boeing's shares surged 2.5%, reaching a 52-week high, driven by steady April deliveries and strong order numbers. Key highlights include an order from Saudi Arabia for 30-37 max aircraft, signaling renewed confidence in Boeing’s strategic initiatives.

Key Insights

• Delivery Milestones: In April, Boeing delivered 45 airplanes, matching their January high, with significant contributions from the 737 Max series ([Phil LeBeau, 19:43]).

• Market Position: With a robust backlog of 5,643 planes and strategic orders from Saudi Arabia, Boeing is poised for sustained growth despite historical challenges ([Dominic Chu, 10:37]).

Notable Quotes

• Tim Seymour ([22:05]): "Despite negative forward P/E ratios, Boeing is on track for a turnaround year with expected profits of $4-5 per share by 2026."

Expert Commentary

• Carter Wirth: Views Boeing’s recent gains as part of a bullish reversal, noting the stock remains significantly below its 2019 highs but is on a positive trajectory ([Carter Wirth, 23:10]).

• Tim Seymour: Highlights Boeing’s strategic positioning and potential for small profits this year against street expectations of losses ([Tim Seymour, 22:05]).

4. Automotive Industry Faces Tariff Pressures

Overview The automotive sector is grappling with significant challenges, including tariffs, the transition to electric vehicles (EVs), and declining sales. Honda's unprecedented 76% drop in operating profits underscores the sector's vulnerability.

Key Insights

• Tariff Impact: Tariffs are re-rating the industry's margin structure, forcing automakers to either absorb costs or pass them onto consumers ([Mark Fields, 30:37]).

• EV Transition: The shift towards electrification is pressuring margins, requiring substantial investment and strategic adjustments ([Mark Fields, 30:37]).

Notable Quotes

• Mark Fields ([31:40]): "Automakers are spending 75-80% of their time figuring out how to deal with tariffs in their supply chain while trying to transition to electrification."

Expert Commentary

• Mark Fields: Identifies Tesla as the best-positioned automaker amidst tariff challenges due to localized production, although he notes it's still a challenging environment compared to Chinese domestic brands ([Mark Fields, 34:18]).

• Tim Seymour: Contrasts Mark’s view, arguing that Tesla may not be as well-positioned as suggested and suggests focusing on companies like GM for long-term investment ([Tim Seymour, 35:34]).

5. Coinbase Joins the S&P 500 and Crypto Market Insights

Overview Coinbase's inclusion in the S&P 500 marks a significant milestone for the crypto industry. Concurrently, Bitcoin has rebounded, crossing the $100,000 mark, signaling renewed investor confidence.

Key Insights

• Market Reaction: Coinbase's stock surged as it prepares to replace Discover Financial in the S&P 500, reflecting growing institutional acceptance of cryptocurrency ([Dominic Chu, 37:45]).

• Retail Engagement: Robinhood reports one of its best months for deposits, with strong buying interest in previously depressed stocks like Apple, Amazon, and Nvidia ([Steve Quirk, 37:41]).

Notable Quotes

• Steve Quirk ([38:40]): "Our customers stepped in to take advantage of unique opportunities, particularly in the most depressed and hard-hit names."

Expert Commentary

• Bono: Highlights the sustained sophistication of retail traders, noting increased activity in leveraged ETFs and sophisticated trading strategies ([Bono, 42:14]).

• Carter Wirth: Observes that platforms like Robinhood are enabling retail investors to act swiftly on market opportunities, contributing to the overall market dynamism ([Carter Wirth, 43:31]).

6. Uber’s Remarkable Stock Performance

Overview Uber's shares have surged over 50% this year, reaching fresh all-time highs post-earnings. The Chartmaster analysis points to positive technical indicators supporting continued growth.

Key Insights

• Technical Analysis: Various chart patterns, including ascending triangles and cup-and-handle formations, suggest ongoing bullish momentum for Uber ([Carter Wirth, 43:31], [44:36]).

• Comparative Performance: While Uber has only paced the S&P 500, Lamar’s rebound indicates strong franchise potential and future growth prospects ([Tim Seymour, 44:41]).

Notable Quotes

• Carter Wirth ([44:40]): "Uber's chart shows a very bullish circumstance, indicating much more to come despite only keeping pace with the S&P for six years."

Expert Commentary

• Tim Seymour: Advocates for Lyft over Uber, believing Lyft is closing the gap and offers better growth opportunities ([Tim Seymour, 44:41]).

7. Final Trades and Market Recap

Overview The episode concluded with final trade recommendations and a recap of the day’s market movements, highlighting the S&P 500's recovery, UnitedHealth’s continued decline, and notable performances from First Solar and Valero.

Key Insights

• Market Movements: The S&P rose, erasing its 2025 losses, while the Dow was weighed down by UnitedHealth's significant drop. The NASDAQ led with a 1.5% gain, and crude oil continued its upward trajectory.

• Stock Highlights:

  • First Solar: Surged 23% in a day, up over 50% in a week, driven by favorable policy shifts ([Bono, 27:45]).
  • Valero: Upgraded by Goldman Sachs to a $154 price target, reflecting strong performance in crude and demand dynamics ([Guy Adami, 28:35]).

Notable Quotes

• Bono ([27:45]): "With the Biden administration pivoting similar to the Trump era, First Solar remains insulated against US-China tensions, making it an attractive investment."

Conclusion

The May 13, 2025 episode of "Fast Money" provided a comprehensive analysis of key market sectors, including the robust performance of semiconductors and Boeing, the challenges facing UnitedHealth and the automotive industry, and significant developments in the crypto space with Coinbase joining the S&P 500. Insights from market experts highlighted both opportunities and risks, offering valuable guidance for investors navigating the dynamic financial landscape.

Notable Quote Recap

• Dominic Chu ([03:13]): "The market should be more focused on what yields are doing."
• Tim Seymour ([05:32]): "The biggest of the semis are taking markets higher with them."
• Sarah James ([14:29]): "Day like this, I wish I could invest in stocks that we cover."

Disclaimer: All opinions expressed by the Fast Money participants are their own and do not reflect the views of CNBC or its affiliates. Investors are advised to conduct their own research before making investment decisions.