Breakfast | NVIDIA launches the most powerful AI chip GB200, institutional investors sell off shares of seven tech giants

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Overnight Morning Market

AI summit boosts tech stocks, US stocks rebound from a two-week low, Tesla rises over 6%

The market expects the Fed to "stand still" on interest rate decisions on Wednesday, but also focuses on whether to modify the interest rate path "dot plot". US stocks opened higher, with the S&P 500 up 0.63%, the Dow up 0.20%, and the Nasdaq up 0.82%.

Leading tech stocks rose across the board, with Meta up 2.7%, Apple up 0.6% to a two-week high, Google A up 4.6% to a five-week high, hitting the largest intraday gain in over a year; Tesla closed up 6.3%, marking the largest single-day gain in six months. Nvidia closed up 0.7% and fell over 1% after hours. Oracle rose nearly 2% to hit a new closing high. Adobe rose 4.4%, AMD fell over 6% for the third consecutive day, SoundHound.ai fell 7.5%, BigBear.ai fell over 9%.

JD.com rose 1.5%, Baidu rose 0.9%, Pinduoduo rose 4%; Alibaba rose 0.2%, Tencent ADR rose 2%, Bilibili fell 2.5% before turning up 0.5%, Nio fell 0.7%, XPeng rose 1.9%, Li Auto fell over 12% to a one-month low.

EHang Intelligent soared nearly 30% at the opening and closed up 0.9%, the world's first domestically developed "air taxi" EHang EH216-S, which has obtained airworthiness certification, was listed on Taobao today with a price tag of 2.39 million yuan.

Blue Chips and Hot Stocks

Musk: The next generation Tesla Roadster will be equipped with rocket technology, surpassing the concept of cars. Starship will land on Mars within 5 years and can fly out of the solar system in the future.

Falsely inflated revenue by 564 billion in 2 years! Evergrande Real Estate fined 4.175 billion, Xu Jiayin fined 47 million. The CSRC announced that Xu Jiayin made decisions and organized the implementation of financial fraud, and Xia Haijun organized and arranged the preparation of false financial reports, with particularly malicious means and extremely serious circumstances, and proposed to take lifelong securities market entry bans on Xu Jiayin and Xia Haijun.

Sunac China: 80% equity of the Shijiazhuang Central Business District project will be sold to the partner Shijiazhuang Zhengtai for approximately 814 million RMB.

Xiaomi officially refutes: "The rumored production capacity of Xiaomi su7, from 107,000 to 133,000" is false news.

BYD will increase its investment in the Brazilian electric vehicle factory by nearly 80% to about 1.1 billion US dollars. The initial annual production capacity of the Brazilian factory is 150,000 vehicles, which will produce pure electric vehicles and hybrid vehicles, and is expected to start production this year.

An insider from Hema confirmed that Hema CEO Hou Yi will officially retire at the age of 60 and will serve as the Chief Honorary Advisor of Hema in the future. The current CFO Yan Xiaolei will also serve as the CEO.

JPMorgan: Lilly management believes that oral medications will change the landscape, and the moats of the "weight loss duo" are underestimated by the market.

Chips and Artificial Intelligence

Google Cloud and Nvidia expand their partnership to promote the development of artificial intelligence.

Nvidia launches its most powerful AI chip, GB200

The first Blackwell chip named GB200 will be launched later this year. Blackwell has 208 billion transistors and uses TSMC's 4nm process. Its AI performance is 200 million trillion floating-point operations per second, while the H100 is 40 million trillion floating-point operations per secondThe system can deploy a model with 270 trillion parameters. Blackwell allows the real-time construction of generative artificial intelligence.

NVIDIA launches new subscription product NIM at $4,500 per GPU per year

NIM will reduce the computational power required for initial training and inference of new AI models, and will also enable running AI on laptops equipped with GPUs instead of on cloud servers.

NVIDIA introduces 6G Research Cloud Platform to advance wireless communication with AI technology.

NVIDIA CEO Jensen Huang mentioned that NVIDIA Omniverse Cloud will be able to connect to Apple's mixed reality headset Vision Pro.

HSBC: Raises NVIDIA's target price from $880 to $1050.

Qualcomm unveils the third-generation Snapdragon 8s mobile platform. This chip has slightly lower performance than the previously released Snapdragon 8 Gen 3 chip, but it supports a wide range of AI models, including popular models like Baichuan-7B, Gemini Nano, Llama 2, and ChatGLM.

Super Micro Computer Inc. (SMCI) launches three fully tracked and ready-to-deploy generative AI Super-Clusters based on NVIDIA, covering infrastructure from enterprises to large LLMs.

Apple is in negotiations with Google to embed the Gemini AI engine in iPhones, and has recently discussed with OpenAI for potential model usage.

TSMC will increase investment in its new advanced packaging plant in the Chiayi Science Park, with a total investment exceeding NT$500 billion, mainly to expand CoWoS advanced packaging capacity.

SK Hynix is restructuring its business in China, planning to close its Shanghai office and focus on its semiconductor manufacturing plant in Wuxi as its new business center in China.

Ford is developing a compact electric vehicle priced at $25,000, expected to debut by the end of 2026.

Cryptocurrency

Standard Chartered Bank: Bitcoin is expected to rise to $150,000 per coin this year and could reach $250,000 per coin by 2025.

Startups

NVIDIA is in deep negotiations to acquire Israeli AI infrastructure orchestration and management platform Run:AI. The deal is estimated to be worth hundreds of millions of dollars, possibly even reaching $1 billion.

Macro: A Look at the World

Goldman Sachs traders: Institutional investors in the US stock market continue to sell Mag7 and buy cyclical stocks.

BlackRock strategist: Optimistic sentiment in the US stock market will persist

As inflation cools down, the US market is digesting a positive macro backdrop. Optimistic risk appetite will not face "serious challenges" in the coming months. Focus is on the artificial intelligence theme as technology is driving corporate profit growthGoldman Sachs has once again lowered its expectations for the number of interest rate cuts by the Federal Reserve this year, now expecting three cuts instead of four. The main reason for the downward revision is a slight increase in the inflation path.

The Bank of Japan is preparing to decide on Tuesday to end its control over the yield curve and purchases of risk assets. The BOJ will continue to buy some Japanese government bonds to prevent a surge in bond yields, but will abandon the framework of pushing down interest rates against the current market trend. Purchases of Japanese stock ETFs and real estate investment trusts will also cease.

Semiconductor industry may enter an upward cycle

Several securities firms have released research reports indicating that the semiconductor industry is expected to enter an upward cycle this year. Guo Tao, Deputy Director of the China E-commerce Expert Service Center, stated: "Memory chips are seen as the 'barometer' of the semiconductor industry. Prices are expected to start rising in the second half of 2023, indicating an improvement in market supply and demand, leading the industry into an upward cycle. The development of the artificial intelligence industry and the recovery of the consumer electronics market will be important factors driving the recovery of the semiconductor industry."

China's State Administration of Financial Supervision and Administration: The requirement for the main shareholders of consumer finance companies to hold a stake of not less than 50% will be increased from not less than 30%