Breakfast | TikTok sues the US government, Guo Mingchi predicts NVIDIA's next-generation AI chip will be mass-produced next year

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Overnight Morning Market

Investors are weighing the probability and timing of the Fed's interest rate cuts this year. Among the three major U.S. stock indexes, only the Nasdaq fell by 0.1%. The S&P 500 index rose by 0.13%, marking a four-day consecutive increase. The Dow rose by 0.08%, marking a five-day consecutive increase, the longest since December 19, 2023. The STOXX 600 index in Europe hit a record high at the close.

Tesla fell by nearly 3.8%, Apple rose by nearly 0.4%, Alphabet rose by nearly 1.9% for five consecutive days, Meta rose by nearly 0.6% for five consecutive days. Amazon approached its historical closing high. Nvidia fell by 1.7%. SoundHound.ai (SOUN) fell by over 5%, Stera Labs (ALAB) fell by over 2%.

Popular Chinese concept stocks continued to decline, underperforming the broader market. XPeng fell by 6.6%, Li Auto fell by over 3%, Nio fell by over 3%, Bilibili fell by over 6%, NetEase fell by nearly 5%, Alibaba, Baidu fell by over 2%, JD.com fell by nearly 2%, Tencent Music fell by over 1%.

Blue Chips and Hot Stocks

Reddit surged by over 20% after hours. Reddit's first-quarter revenue was $243 million. Daily active users reached 827,000, exceeding the market's expectation of 773,500. Revenue for the second quarter is expected to be between $240 million and $255 million, with the market expecting $228 million.

NASA: Boeing's "Starliner" flight test target date adjusted to after May 17.

Boeing supplier Spirit Aero: Will deliver 55 Dreamliner fuselages in 2024, down from the previous plan of 80.

From April 29 to May 5, Li Auto's weekly sales volume was 5,300 units.

The Wall Street Journal: Tesla recalls Zhu Xiaotong to China. German business newspaper: Tesla's German factory will halt production for 4 days due to protests. The China Passenger Car Association announced that Tesla's wholesale sales in China in April were 62,167 units.

Tesla Chairman sells another $17.3 million in shares, totaling over $50 million this year

Tesla Chairman Robyn Denholm sold $17.3 million worth of Tesla shares on May 6 local time, bringing her total sales to all 281,116 shares allowed under the agreement.

Media: TikTok sues the U.S. government over the "sell or ban" bill.

Pfizer (PFE.N): Boy undergoing gene therapy suffers cardiac arrest. Research on gene therapy has been suspended after the boy's death.

Occidental Petroleum: Adjusted earnings per share for the first quarter were $0.63, exceeding analysts' expectations of $0.58. First-quarter pre-tax revenue from oil and gas was $1.2 billion, below the market's expectation of $1.26 billion.

Nintendo sold 15.7 million Switch units in the 23/24 fiscal year, slightly below the market estimate of 15.91 million units; the total sales forecast for this fiscal year is 13.5 million units, with the market estimate at 13.22 million units; Nintendo President: will announce the next generation of Switch consoles this fiscal year, and will announce the software lineup for the second half of the year at the June Nintendo Direct, but will not mention the next generation console

Chips and Artificial Intelligence

Apple held a new iPad launch event, the new iPad Air is equipped with the M2 chip, with two sizes available for the first time; the new iPad Pro will be powered by the M4 chip. The starting price for the new iPad Pro is $999 for the 11-inch model and $1299 for the 13-inch model.

OpenAI is considering postponing this week's product launch event.

Samsung is assembling a team of one hundred engineers to compete with NVIDIA in HBM transactions.

Reports suggest that Apple's photo application will introduce AI editing, achieving Photoshop-level editing.

Guo Mingchi: It is expected that NVIDIA's next-generation AI chip will enter mass production in the fourth quarter of next year, with energy consumption being a key focus.

NVIDIA's system/cabinet solution is expected to enter mass production in the first half of 2026. The R100 will adopt TSMC's N3 process and CoWoS-L packaging (same as B100). The R100 is expected to be paired with 8 HBM4. NVIDIA has realized that the energy consumption of AI servers has become a challenge for CSP/Hyperscale procurement and data center construction. Therefore, in addition to improving AI computing power, energy efficiency is also a key design focus for the R series of chips and system solutions.

Meta Platforms announced the launch of new artificial intelligence tools to assist marketers in their advertising campaigns.

How does Baidu Wenxin view the incident involving a Baidu vice president? It stated that it "reflects the true mentality of some corporate managers".

IPO Opportunities

Nabs, a nuclear energy developer in which Sam Altman is involved in investing, has approved a merger with a Special Purpose Acquisition Company (SPAC).

Macro: Taking You Around the World

Federal Reserve's Kashkari: The estimate for the neutral interest rate has been moderately raised from 2% to 2.5%; it is premature to declare progress on inflation stagnation, if necessary, raising interest rates is most likely to maintain the current rate for a longer period; the June dot plot suggests two rate hikes this year, one rate cut, or no rate cut.

Morgan Stanley has pushed back its expectation for the Federal Reserve's first rate cut from July to September. They still expect three rate cuts this year, each by 25 basis points.

Polls show: Confidence in Powell among Americans is near historic lows.

A Gallup poll found that due to stubborn inflation and high prices that have left American consumers dissatisfied, Powell is finding it difficult to shake off the label of being the worst-rated Federal Reserve Chairman in nearly 25 years.

China and France have reached multiple joint statements and interdepartmental agreements, including the "China-France Joint Statement on the Situation in the Middle East" and the "China-France Joint Statement on Artificial Intelligence and Global Governance".

Putin's first visit after his new term is to China.

China Passenger Car Association: It is estimated that in April, the national wholesale sales of new energy passenger vehicles will reach 800,000 units, a year-on-year increase of 33%, with a slight 2% decrease from the previous month.

Guangfa Securities' Ji Chengwei: Interdisciplinary integration capabilities will be one of the key competitive factors for new energy vehicle companies.

If the future of new energy vehicles is defined as smart electric vehicles, then a key competitive factor for related companies is interdisciplinary and cross-industry integration capabilities. In recent years, car companies that have seen rapid growth have possessed the ability to integrate across disciplines, understanding both electrochemistry and car manufacturing, as well as chips, software, and car manufacturingFrench Finance Minister Le Maire: Considering the possibility of taxing stock buybacks