Breakfast | Tesla, NVIDIA both up 5%! Robotics stock SERV surges, CrowdStrike continues to plummet

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Overnight Morning Market

Overnight, the three major U.S. stock indexes closed higher, with the Dow rising 0.32% to 40,415.44 points, the S&P 500 rising 1.08% to 5,564.41 points, and the Nasdaq rising 1.58% to 18,007.57 points.

The "Big Tech Seven" all rose. Tesla closed up 5.15%, NVIDIA up 4.76%, Google-A up 2.26%, Meta up 2.23%, Microsoft up 1.33%, while Apple fell 0.16% and Amazon fell 0.32%.

Most AI concept stocks closed higher. Serve Robotics, a 2.0 version NVIDIA concept stock, surged over 16.1%, continuing its 187.07% increase from last Friday. The cybersecurity company CrowdStrike, which caused a global IT system crash last week, continued to plummet, ending the day down 13.46%.

"Trump Trade" cools down, electric vehicle and photovoltaic stocks soar, while oil stocks decline.

Chinese concept stocks collectively rose. The KraneShares CSI China Internet ETF (KWEB) rose 2.64%, and the Nasdaq Golden Dragon China Index (HXC) rose 2.77%.

Among popular Chinese concept stocks, Nio rose 5.16%, XPeng rose 6.51%, ZEEKR rose 6.1%, Li Auto rose 4.18%, Bilibili rose 2.06%, JD.com rose 2.25%, Tencent Holdings (ADR) rose 3.3%, Alibaba rose 1.82%, Baidu rose 2.1%, NetEase rose 2.33%, and Pinduoduo rose 0.9%.

Blue Chips and Hot Stocks

Tesla CEO Musk stated that Tesla will "small-scale produce" humanoid robots for internal use next year, and by 2026, it is "expected" to mass-produce robots for other companies.

Reports suggest that Google is in talks with eyewear manufacturer Luxottica, planning to further purchase its shares and collaborate on producing smart glasses featuring the Gemini model. Earlier reports indicated that Meta also plans to invest billions of dollars to acquire about 5% of Luxottica's shares to deepen cooperation.

Berkshire Hathaway continues to reduce its holdings in BYD, with its stake falling below 5%. Analysts point out that once the stake falls below 5%, Buffett will accelerate the pace of reduction, as holdings below 5% do not require disclosure.

AMC Entertainment Holdings announced a refinancing deal, extending the maturity date of up to $2.45 billion in debt from 2026 to 2029 and beyond, and may issue up to an additional $50 million in convertible notes.

Chips and Artificial Intelligence

Morgan Stanley stated that investors are more concerned about Tesla's "AI narrative" than electric vehicles. A survey showed that 68% of investors see AI as the main driver of Tesla's stock price in the next year, with only 33% leaning towards electric vehicles. The bank has set a target price of $310 for Tesla.

Is the darling of chip stocks changing? Citi: Broadcom is catching up with NVIDIA. A Citi analyst stated that in communications with investors last week, NVIDIA remains the most favored chip stock, with Broadcom closely following, as Broadcom has gained more AI customers like OpenAI and acquired VMware, while investors are somewhat tired of NVIDIA. **

AI demand boost, SAP's cloud revenue surged 25% in the second quarter, rising more than 5% after hours. SAP's total revenue in the second quarter exceeded expectations with a 10% growth, cloud ERP suite revenue increased by 33%, and currently, cloud business backlog orders grew by 28%. SAP maintains its guidance for this year unchanged, with a slight upward adjustment to next year's operating profit guidance.

Cryptocurrency

The Ethereum spot ETF is expected to launch on Tuesday, with the US SEC approving applications from companies like BlackRock. Bitcoin ETF has seen four consecutive weeks of fund inflows, and the market is awaiting Trump's speech at the heavyweight cryptocurrency conference this week. Media reports suggest that Trump may propose to classify Bitcoin as a strategic reserve asset at this week's Bitcoin conference.

Macro: A Global Perspective

China's "interest rate cut", with the 1-year and 5-year LPR reduced by 10 basis points on July 1. LPR follows the reverse repurchase rate cut synchronously, as China's central bank's new monetary policy framework gradually emerges.

Morgan Stanley is bearish on Asian tech stocks: overbought and expensive, it's time to exit. Morgan Stanley stated a preference to shift towards consumer stocks before the Fed's rate cut in September, although the upcoming AI smartphone cycle remains a key observation point.

Oaktree Capital founder Howard Marks discusses the folly of "certainty", where 8 years ago people were certain of two things: Hillary would win, and if Trump won, the stock market would crash! In his latest memo, Howard points out that the most important job for investors is risk management, as we never know what the future holds