Breakfast | Quantum Computing "meme stock" plummets over 30% again! Reports indicate NVIDIA AI chip failures lead to major clients cutting orders

Overnight Market Overview

Before the release of the significant CPI in the United States, the performance of U.S. stocks was mixed. The energy sector rose over 2%, supporting a thrilling rebound in the S&P, while technology stocks continued to drag down the market. The Nasdaq initially fell nearly 2% but erased most of its losses, with NVIDIA dropping nearly 5% during the day before closing down nearly 2%. Tesla initially fell nearly 4% but turned to gain over 2% by the close.

AI concept stocks fell broadly. Serve Robotics dropped 21%, and SoundHound AI, in which NVIDIA holds shares, fell 9%, marking five consecutive days of decline.

Quantum computing concept stocks plummeted significantly, with QBTS and RGTI down over 30%, QUBT down 27%, and Quantum QMCO down 23%.

United States Steel Corporation (X) rose 9% at one point, reaching a one-month high. According to CNBC, Cleveland-Cliffs has formed a partnership with Nucor regarding a potential acquisition of United States Steel.

Report: NVIDIA AI Chip Malfunction Leads Microsoft and Other Clients to Cut Orders! Stock Price Plummets Nearly 5% at One Point

Reports indicate that NVIDIA's latest generation AI chip, Blackwell, encountered technical issues when deployed to data centers, including server rack overheating and chip connection anomalies, causing several clients (such as Microsoft, AWS, Google, and Meta) to delay data center plans and reduce orders. Following the news, NVIDIA's stock fell over 4.7% at one point.

Morgan Stanley Raises Tesla Target Price, Most Optimistic Expectation Doubles to $800

Morgan Stanley analysts reiterated that Tesla remains their "preferred" stock, raising the target price by 7.5% to $430. They emphasized the potential for Tesla's autonomous vehicle technology and embodied intelligence (EAI) to drive stock price growth, stating that Tesla's overall potential market scope will further expand, covering "many areas not yet included in the company's buyer or seller financial models."

After Jensen Huang, Zuckerberg Also Throws Cold Water, Quantitative "Demon Stocks" Reenact Last Week's Double-Digit Decline

After Jensen Huang stated last week that quantum computing applications would take decades, Zuckerberg remarked that quantum computing is still a long way from becoming a very useful paradigm, with many expecting it may take over ten years. On Monday, D-Wave Quantum and Rigetti Computing both fell over 30%.

Apple's AI Launch in China Changes, iPhone Global Market Share Declines

Market research data shows that in 2024, iPhone's global market share declined by 1%, with sales down 2% year-on-year. Currently, Apple's Apple Intelligence has not yet launched in the Chinese market, and analysts expect iPhone shipments to decline by 6% year-on-year in the first half of this year. Zuckerberg believes that the sales difficulties of the iPhone are due to the new models not showing significant improvements compared to previous versions.

Pony Ma's Internal Speech Exposed

At the 2024 annual employee meeting, Pony Ma stated that Tencent's overseas gaming business share has approached half of its domestic gaming share, and there will be faster development in the future. He also mentioned that products should not be limited to video accounts but should be integrated into the entire WeChat ecosystem, "thinking about e-commerce from an atomic level," and firmly supports the WeChat business group in making such innovative developments, looking forward to more "blue packages" and new ideas in the future

Global smartphone sales in 2024 bid farewell to the lowest point in a decade, with Xiaomi experiencing the fastest growth

Samsung continues to lead the market, holding a 19% market share, while Apple ranks second with an 18% market share. Over the past year, Xiaomi has grown the fastest among the top five brands, capturing 14% of the global market share.

New U.S. Treasury Secretary Basant's holdings: S&P 500, Nasdaq, Bitcoin

Basant holds over $50 million in S&P 500 and Nasdaq ETFs, $250,000 to $500,000 in iShares Bitcoin Trust ETF, and over $50 million in U.S. Treasury bonds. Additionally, his portfolio includes various assets such as artworks, antiques, farmland, and luxury homes, with total assets amounting to at least $521 million.

Johnson & Johnson's $10 billion acquisition of Intra-Cellular, with the latter's stock price soaring, up 34% on Monday

This is the largest deal in the biotechnology sector in nearly two years and the first biopharmaceutical merger exceeding $10 billion in 2024, indicating a resurgence in merger activity within the healthcare industry. Goldman Sachs states that large biopharmaceutical companies have a potential financing capacity of at least $500 billion, providing significant operational space for R&D investments and merger expansions.

China's central bank stabilizes the exchange rate with further actions

The People's Bank of China and the State Administration of Foreign Exchange have decided to raise the macro-prudential adjustment parameter for cross-border financing by enterprises and financial institutions from 1.5 to 1.75, effective January 13, 2025. Raising the "macro-prudential adjustment parameter" can increase the upper limit of cross-border financing for enterprises and financial institutions, encouraging them to increase cross-border financing, leading to an increase in cross-border capital inflows, thereby increasing foreign currency supply and helping to curb the rapid depreciation of the Renminbi from a supply-demand perspective.

Death toll from Los Angeles wildfires rises to 24, with overhead power lines possibly being the source

There is public opinion suggesting that, in addition to seasonal strong winds, negligence in management by the power sector is a major cause of this fire incident. An increasingly supported theory posits that overhead power lines, still operational before the fire, were blown down by strong winds, igniting dry vegetation and triggering the disaster