Breakfast | NVIDIA's explosive performance surged 7% after hours, Alphabet-C released open-source AI large model Gemma.

LB Select
2024.02.21 23:57
portai
I'm PortAI, I can summarize articles.

NVIDIA claims that AI has reached a "tipping point" and has shipped alternative products to the Chinese region, and will host the GTC 2024 conference. Intel will manufacture chips for Microsoft and is expected to surpass TSMC in the field of advanced chip manufacturing. Boeing has adjusted the project leader for the 737 MAX. Bezos once again sold over 14 million shares, worth $2.37 billion. Douyin e-commerce has launched a low-price strategy. Taotian Group has established a live e-commerce company. Duan Yongping was exposed to increase his holdings in oil stocks.

Good morning! A great day starts with making money.

Overnight Market Update

The minutes from the Federal Reserve's January meeting released at noon showed that Fed officials are concerned about cutting interest rates too quickly and worry about stagnating inflation. After the market closed, NVIDIA announced that its revenue for the last quarter and guidance for this quarter were both higher than expected, leading to a post-market surge in chip stocks and AI concept stocks.

Among the three major indices, only the Nasdaq closed lower, down by 0.23%, marking a third consecutive day of decline. The S&P 500 rose by 0.13%, while the Dow Jones Industrial Average also increased by 0.13%.

Tesla rose by 0.5%, while Microsoft, Meta (Facebook's parent company), and Netflix fell by nearly 0.2%, 0.7%, and 0.3% respectively. Microsoft has fallen for four consecutive days. Apple, which had been declining for six days, rose by 0.4%, Amazon by 0.9%, Alphabet-C by nearly 1.2%, and NVIDIA fell by nearly 2.9%, with a post-market increase of up to 7%. Intel dropped by over 2%.

Overall, AI concept stocks continued to decline, but rebounded after the market closed. Super Micro Computer Inc. (SMCI), a "magic stock" that has surged by over 150% since the beginning of the year, fell by nearly 6.8%, but rose by over 10% after hours. BigBear.ai (BBAI), which fell by over 9%, rose by nearly 9% after hours.

Popular Chinese concept stocks rebounded overall. Li Auto rose by over 4%, Alibaba by over 3%, BIDU-SW, XPeng, and Bilibili by over 1%, Nio by nearly 0.2%, Pinduoduo fell by over 1%, NetEase by 0.7%, New Oriental by over 2%, and Gannan Technology by over 12%.

Blue Chips and Hot Stocks

AI Reaches "Tipping Point"! NVIDIA's Performance Soars, Surging 7% After Hours

NVIDIA's first-quarter revenue is expected to exceed expectations, with the market expected to have a high demand for its industry-leading AI chips and improvements in the supply chain dynamics. The estimated revenue for Q1 is $24 billion, with analysts' average expectation at $22.1 billion, surpassing expectations for NVIDIA's fourth-quarter performance.

NVIDIA CEO Jensen Huang stated that accelerated computing and generative AI have reached a tipping point. Demand from companies, industries, and countries worldwide is skyrocketing. It is expected that data center infrastructure will double within 5 years.

NVIDIA: Revenue Share from China's Data Centers Drops to Single Digits in Latest Quarter

It is expected to remain in a similar range for the next quarter. Apart from China, data center growth from all other regions is strong. In past quarters, revenue from data center operations in restricted countries and regions such as China accounted for about 20%-25% of NVIDIA's revenue. NVIDIA has started shipping alternative products to China without requiring a license.

NVIDIA will host the GTC 2024 conference from March 18th to 21st, unveiling the latest breakthroughs in accelerated computing, generative AI, and robotics.

Google Releases Open-Source AI Mega Model Gemma, Claiming Superior Performance in Comparable Scale

Google introduced Gemma as the most advanced lightweight open model series, surpassing the previous leader, Mistral 7B. The Gemma series consists of two models with different weight scales, namely "Gemma 2B" and "Gemma 7B," with 20 billion and 70 billion parameters respectively.

Microsoft to Use Intel 18A Technology to Produce Chips

Microsoft has not disclosed specific products, but recently announced plans for two self-developed chips: a computer processor and an artificial intelligence accelerator. Microsoft is seeking stable semiconductor supply.

Intel has introduced system-level foundry services designed for the era of artificial intelligence. Intel will manufacture chips for Microsoft, potentially surpassing TSMC in the advanced chip manufacturing field.

Boeing adjusts 737 MAX project leader.

Apple launches free sports event app "Apple Sports."

Rivian's revenue in the fourth quarter was $1.32 billion, exceeding market expectations of $1.263 billion and last year's $663 million. The company expects to produce 57,000 vehicles in 2024, while the market expects 80,000 vehicles. The company announced a 10% workforce reduction. Rivian's stock price fell 12% after hours.

Amazon founder Bezos once again sold over 14 million shares, worth $2.37 billion. Bezos completed a plan to sell 50 million shares and cash out $8.5 billion in just nine trading days.

Insiders revealed that Disney has reached an agreement with Sony, with Sony taking over most of Disney's DVD and Blu-ray disc sales business in the United States and Canada. Disney will retain control of the home entertainment business.

Media reports that Douyin e-commerce has launched a low-price strategy, aiming for a transaction volume exceeding 3 trillion yuan this year. Douyin responded that the data is not accurate.

Taotian Group establishes a live e-commerce company, providing refined hosting and operation services for new anchors entering Taobao. The company's relevant person in charge explicitly stated that "the entire project is not profit-oriented."

China Traditional Chinese Medicine announced that China National Pharmaceutical Group plans to privatize China Traditional Chinese Medicine at a price of HKD 4.6 per share.

Duan Yongping was exposed to increase holdings in oil stocks.

As of the end of the fourth quarter last year, an institution named H&H International Investment LLC held 440,100 shares of Western Oil, with a market value of $26.2784 million, ranking as the sixth largest heavy stock. Netizens pointed out that the major shareholder of H&H has the same name as Duan Yongping's pinyin name "YONGPING DUAN," indicating it is a company set up by Duan Yongping in the United States.

Macro: Taking You Around the World

Fed Meeting Minutes: Current Monetary Policy is Restrictive, but Still Highly Concerned about Inflation Risks

Participants believe that the current monetary policy stance is restrictive and will continue to exert downward pressure on economic activity and inflation. It is expected that supply and demand in commodity and labor markets will continue to balance. Participants noted the uncertain economic outlook and remain highly concerned about inflation risks. They hope to see more evidence before cutting interest rates.

JPMorgan Strategist Kolanovic: U.S. 1970s-style Stagflation May Return

The recent rise in consumer and producer prices has cast a shadow over the optimism of the U.S. economy, with investor sentiment possibly shifting from expecting a "golden girl" scenario to a return to the "stagflation" of the 1970s. The U.S. deficit is "not on a sustainable path," and many factors could drive inflation higher. In fact, it points out the "risk of a second wave of inflation."


India's IT Minister Ashwini Vaishnaw has announced that India plans to build as many as five semiconductor factories in the next five years.

The State-owned Assets Supervision and Administration Commission of China held a special meeting on advancing artificial intelligence in central enterprises. Ten central enterprises signed an initiative, stating their intention to proactively open up AI application scenarios to society.