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2024.02.23 00:04
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Breakfast | Analysts say NVIDIA is not overvalued, valuation is still low, Reddit applies for IPO, Tencent and Sam Altman are both shareholders.

The "faith" in AI has ignited the global stock market, with NVIDIA's market value skyrocketing in a single day, setting a new record in the US stock market, and Huang Renxun's net worth rising to 21st globally. Citron Research claims that BIDU-SW is the most undervalued stock in the AI field. Alphabet-C has temporarily suspended the Gemini AI image generation function due to inaccurate image creation. Reddit, the stronghold of retail investors in the US stock market, has submitted an IPO application to the NYSE, with Tencent and OpenAI founder Sam Altman as shareholders. Xiaomi 14 Ultra has been released, equipped with the self-developed Pangolin T1 signal enhancement chip.

Good morning! A great day starts with making money.

Overnight Market Update

NVIDIA injected a shot in the arm for the market, AI concept stocks ignited a global stock market frenzy. The MSCI Global Index, Nikkei 225 Index, S&P 500 Index, and Dow Jones all hit historic highs, with the Nasdaq approaching a record high.

NVIDIA surged by 16.4%, hitting both intraday and closing historic highs, with a single-day market value increase of $277 billion, equivalent to one Goldman Sachs plus two Netflix, marking the highest single-day market value increase in U.S. stock market history. Jensen Huang's net worth rose to 21st globally. AI computing hardware concept stock AMD and AI application side "monster stock" Super Micro Computer (SMCI) both soared by double digits.

Tesla rose by nearly 1.4%, Meta closed up by nearly 3.9%, Amazon rose by nearly 3.6%, Netflix rose by 2.6%, Microsoft rose by nearly 2.4%, Apple rose by 1.1%, Alphabet rose by nearly 1.1%. AMD surged by 10.7%, Arm by 4.2%, Broadcom closed up by 6.3%, Intel fell by 1.1%. Super Micro Computer (SMCI) surged by 32.9%, BigBear rose by over 7%.

Overall, popular Chinese concept stocks continued to rise. Li Auto surged by over 5%, Baidu by over 3%, NetEase by nearly 2%, Pinduoduo by over 1%, Alibaba, JD.com, XPeng all rose by around 0.7%, Tencent Music rose by 0.5%, while Nio fell by 2%, and Bilibili dropped by 0.3%.

Space exploration startup "Intuitive Machines" saw its stock price soar by 28% after hours, with its lunar lander successfully landing on the moon.

Blue Chips and Hot Stocks

$277 Billion! NVIDIA Achieves the Largest Single-Day Market Value Growth in U.S. Stocks

NVIDIA's stock price surged by 16% on Thursday, reaching a historic high, with a market value increase of about $277 billion, setting a record for the largest single-day market value increase in U.S. stocks, surpassing the $196.8 billion record set by Meta three weeks ago, with a total market value close to $2 trillion. Stacy Rasgon, an analyst at Sanford C. Bernstein, said, "This company is like printing money." The market jokingly refers to NVIDIA's prosperity as a new Federal Reserve interest rate meeting.

Jensen Huang's Net Worth Soars, Approaching the Top 20 Richest People in the World

Jensen Huang's wealth soared by $8.5 billion on Thursday, reaching $68.1 billion. This will surpass Charles Koch and Chinese bottled water tycoon Zhong Shanshan, rising to 21st on the Bloomberg Billionaires Index. Just last year, he ranked 128th with a net worth of $13.5 billion.

Analyst: Where is the Bubble in NVIDIA? Still One of the Lowest Valued AI Stocks

"Some investors are afraid to buy, thinking the stock price is already too high, which is a big mistake," said James Demmert, Chief Investment Officer of Main Street Research. "Every time NVIDIA announces its performance, the P/E ratio drops because the denominator is much larger than people expected."

NVIDIA's dynamic P/E ratio is about 32 times, while rival AMD is at 45 times. The valuations of Amazon and Microsoft are higher than NVIDIA's, with the Nasdaq 100 Index P/E ratio at 25 times. David Wagner, portfolio manager at Aptus Capital Advisors LLC, said, "Even considering the significant surge since the beginning of the year, NVIDIA remains one of the lowest valued AI stocks."

Wedbush Securities: The AI Party has just begun, NVIDIA's stock price may reach four digits

From the perspective of peak demand, the AI party has just begun. This massive wave of spending will flow to other tech companies, continuing to boost the tech bull market. In the next two to three years, companies like AMD may join the competition, but for now, NVIDIA is the "only player."

UBS: Lowered NVIDIA's target price from $850 to $800

Citron: Baidu is the most underestimated stock in the AI field, with the stock price expected to rise to $210 (latest closing price $110)

Xiaomi 14 Ultra released, equipped with self-developed Surging T1 signal enhancement chip

Starting at 6499 yuan, this is a professional imaging flagship phone that will go on sale at 10 a.m. on February 27th. The 12GB+256GB version is priced at 6499 yuan, the 16GB+512GB version at 6999 yuan, and the 16GB+1TB version at 7799 yuan. Xiaomi has launched its first AI large model computing photography platform "Xiaomi AISP."

Huawei released the vertically folding phone Pocket 2, starting at 7499 yuan. Richard Yu: The number of HarmonyOS upgraded devices has reached 137, with a major upgrade planned for this fall, increasing performance by 30%.

After creating inaccurate images, Google has temporarily suspended the Gemini AI image generation function.

Apple responds to €500 million fine: Spotify wants to freeload on our resources

Spotify filed a lawsuit in 2019, accusing Apple of unfair practices in music streaming. After the EU trial, Apple was found to have violated the law, with plans to impose a fine of up to €500 million. Apple stated on Thursday that Spotify's goal is to use Apple's tools and services without paying fees and gain more value from the App Store.

Apple is set to launch an upgraded version of the iMessage messaging platform to defend against potential quantum computing encryption cracking technology in the future.

JPMorgan Chase CEO Dimon publicly sold 821,778 shares of JPMorgan Chase common stock on the open market on February 22, at a price between $182.7308 and $182.7365 per share, totaling approximately $150 million.

The Japanese government plans to subsidize TSMC's second factory in Kumamoto with 730 billion yen.

Tuhu: Expects net profit in 2023 to be no less than RMB 6.6 billion, turning losses into profits YoY

Tuhu expects to record a net profit of no less than RMB 6.6 billion for the year ending December 31, 2023, compared to a net loss of approximately RMB 2.1 billion for the year ending December 31, 2022, turning losses into profits.

Booking's adjusted earnings per share for the fourth quarter were $32, exceeding expectations of $29.62; revenue was $4.78 billion, surpassing the expected $4.73 billion. Fourth-quarter bookings amounted to $31.7 billion, surpassing the expected $31.3 billion. Booking's stock fell over 5% in after-hours trading.

Several U.S. telecom operators experienced brief signal outages, with interruptions in the cellular networks of some U.S. carriers such as AT&T, Cricket Wireless, Verizon, T-Mobile, and other service providers.


Founder of Gahe Ding Lei: Apologizes to Employees, Acknowledges that the Window of Opportunity is Only 3 Months Left

Following Gahe Motors' announcement of a 6-month shutdown, founder Ding Lei made his first public appearance. Ding Lei apologized to employees, admitting that his old-fashioned business strategy cannot compete with the internet. Many companies outside have shown interest in acquiring or investing in Gahe Motors.

There are rumors that Aliyun is following Sora's work schedule for front-line employees, but the official response is: fake, absolutely impossible.

IPO Opportunities

American social media platform Reddit submits IPO application to NYSE

Tencent holds 6.4% of the company's Class A shares. OpenAI founder Sam Altman holds 4.5% of the Class A shares, making him Reddit's third-largest shareholder and playing the role of an investor. The net loss in 2023 was $90.8 million, and in 2022, it was $158.6 million. 98% of the revenue comes from third-party advertising on the platform. Some excess cash will be invested in Bitcoin and Ethereum.

Hongji Group (Holdings) Limited conducts a hearing for its IPO on the main board of the Hong Kong Stock Exchange. The company is a Hong Kong steel structure engineering contractor, focusing on supplying, manufacturing, and installing structural steel for construction projects in Hong Kong.

Macro: A Global Perspective

Fed's Harker: There may be an opportunity for rate cuts in the second half of the year. We are close to a rate cut, just need a few more "meetings" to decide. A rate cut may happen in May, but it is not my current expectation. The biggest risk is the Fed cutting rates too early.

Fed Governor Jefferson: A rate cut later this year may be appropriate.

"Fed Whisperer" Nick Timiraos: Barclays, BNP Paribas, J.P. Morgan, and Nomura Securities have all pushed back the Fed's first rate cut to June.

Nasdaq rises nearly 3%, Analysts: Don't stop believing

Forexlive analyst Adam Button: The Fear and Greed Index has entered the extreme greed zone, with many holding opposing views, but it's really hard to make this rally fade. Nvidia's current P/E ratio is only around 30 times, while companies in 1999, especially leading companies, had P/E ratios of 50-60 times. Every story has its flaws, but it's pointless to fight against it.

Is it prohibited for institutions to short A-shares through stock index futures? China Securities Regulatory Commission responds: Shanghai and Shenzhen Stock Exchanges have taken regulatory measures against individual institutions' abnormal trading behaviors in accordance with regulations, which is a regulatory measure to fulfill their trading supervision duties, not a restriction on selling.

To cope with the largest LPR rate cut, many small and medium-sized banks in mainland China have lowered deposit rates.