Breakfast | NVIDIA's market value surpasses Apple to become the world's number one, Trump announces a $500 billion AI infrastructure investment plan

Good morning! A beautiful day starts with making money.

Trump's 2.0 First Trading Day: All Three Major Indices Closed Higher, Small-Cap Stocks Led the Gains, Bitcoin Rose to $107,000

Wall Street believes that Trump's trade policy stance has softened slightly, boosting optimism. On Tuesday, U.S. stocks rose broadly, with small-cap stocks leading the way, while tech stocks had mixed performances. Most sectors were up, with only the energy sector declining, mainly affected by President Trump's executive orders and the strengthening dollar in the morning pressuring oil prices.

The Dow Jones Industrial Average rose 1.2%, the S&P 500 increased by 0.88%, and the Nasdaq gained 0.6%. NVIDIA rose 2.2%, surpassing Apple in market capitalization to become the world's largest. Apple fell 3.1%, downgraded by two institutions, as the market believes AI has not played the expected role as a growth catalyst. Alphabet rose 1.05% to a new high. Trump Media & Technology Group (DJT.O) fell 11%. Amazon rose 2.11%, Meta increased by 0.6%, Microsoft fell 0.12%, and Tesla dropped 0.57%.

Chip stocks and AI concept stocks rose broadly. The double long ETF for NVIDIA rose 4.37%. NXP Semiconductors rose 9.2%, Wolfspeed was flat, TSMC ADR rose 3.4%, Micron Technology rose 3.43%, Arm Holdings rose 3.98%, AMD rose 0.68%, Broadcom rose 1.21%, and Intel rose 1.3%. ASML ADR rose 0.88%. SoundHound AI rose 21.11%, BigBear.ai rose 12.5%, BullFrog AI rose 10.38%, Super Micro Computer rose 5.29%, and C3.ai rose 2.5%. Oracle rose 7.17%, as U.S. President Trump announced AI infrastructure investments, with OpenAI, SoftBank of Japan, and Oracle planning to establish a joint venture named Stargate. SoftBank Group ADR rose 4.1%.

Chinese concept stocks had mixed performances. The Nasdaq Golden Dragon China Index fell 0.36%, the FTSE China 3x Long ETF (YINN) rose 3.14%, and the China Technology Index ETF (CQQQ) rose 1.4%. New Oriental fell 23%, with second-quarter operating profit down 9.8% year-on-year to $19.3 million. XPeng rose 6.2%, Li Auto rose 5.6%, Baidu rose 1.1%, NetEase and Yum China rose about 1%, Bilibili fell 2.3%, NIO fell 3.9%, and New Oriental fell 23%. Pinduoduo fell 1.35%, Tencent Holdings fell 0.22%, and Fangdd was flat.

Bitcoin continued to rise, reaching $107,000 per coin, up 4.64% for the day.

Trump Announces Multiple Companies Will Invest $500 Billion in AI Infrastructure, Related Concept Stocks Rose After Hours

Trump announced an AI infrastructure investment plan worth up to $500 billion. He stated that OpenAI, SoftBank, and Oracle will establish a joint venture named Stargate, launching the "Stargate" project, which will invest at least $500 billion in AI infrastructure. It is expected to create 100,000 jobs. Microsoft and NVIDIA rose 2% in after-hours trading, while Arm and Oracle rose 3% Microsoft: The OpenAI API will be exclusively available on Azure, running on Azure, and can be accessed through Azure's OpenAI service.

OpenAI: The collaboration with Microsoft (MSFT.O) is growing, and the "Stargate" project is an extension of the partnership, with OpenAI developing Azure cloud technology alongside Microsoft for the "Stargate" project.

Oracle's stock rose nearly 4% after hours, with Chairman Ellison stating that data centers in Texas are under construction, and they will also expand in other regions.

SoftBank CEO: We will immediately invest $100 billion in AI in the U.S.

U.S. Media: Trump's First Interview After Taking Office Will Air Thursday Morning

Fox News will interview President Trump in the Oval Office on Wednesday local time. This is Trump's first interview since taking office. The interview will be pre-recorded and will air on the "Hannity" program starting at 9 PM Eastern Time on Wednesday (10 AM Singapore Time on Thursday). Fox News confirmed that Trump is expected to discuss his second presidential term, recent executive orders, and expectations for the first 100 days in office. On his first day in office, Trump signed over 40 presidential executive orders.

Trump Responds to Cryptocurrency: I Don't Know If It (TRUMP Coin) Is Profitable

I don't know much about it, just that I launched it. I heard it was very successful. TRUMP Coin saw a short-term plunge, dropping nearly $10 at one point, with a low of $35.

U.S. SEC Establishes Cryptocurrency Working Group to Develop Regulatory Framework

The U.S. Securities and Exchange Commission's acting chairman Mark Uyeda has established a special working group for cryptocurrency, "dedicated to developing a comprehensive and clear regulatory framework for cryptocurrency assets." The focus will be on helping the commission delineate clear regulatory boundaries, providing practical registration pathways, establishing reasonable disclosure frameworks, and wisely deploying enforcement resources.

Sources: Trump's Team Expected to Cancel National Space Council After Lobbying by SpaceX

U.S. President Trump: The EU Will Face Tariffs

Meta Plans to Launch "Oakley" Smart Glasses and Explore Smartwatch and Headphone Development

Meta's device division Reality Labs also plans to release a new high-end pair of glasses with a built-in display in 2025. Sources also indicated that other products in development will compete with Apple's smartwatches and AirPods. Additionally, the company is developing its first true augmented reality product, expected to be released around 2027.

Nio Has Formed a Team of About 20 People to Research Robot Dog Projects

Nio has formed a team of about 20 people to research robot dog projects, led by Xu Kang. Xu Kang was an algorithm expert at Momenta and joined Nio's autonomous driving team after 2020.

Sources: Berkshire Hathaway's Pilot Company Will Shut Down International Oil and Fuel Trading Business

The company has laid off most of its traders in recent weeks and months.

Piper Sandler: Raises Tesla's target price from $315 to $500, reflecting optimism about its artificial intelligence and real-world application prospects.

Netflix surges 10% after hours, with new paid subscribers exceeding expectations.

Netflix's Q4 2024 revenue is $10.25 billion, compared to $8.83 billion in the same period last year, with market expectations at $10.13 billion. EPS is $4.27, up from $2.11 in the same period last year, with market expectations at $4.20. The global streaming paid net new subscribers are 18.91 million, while the market expected 9.6 million. Q1 2025 revenue is expected to be $10.42 billion, with market expectations at $10.49 billion; EPS is expected to be $5.58, with market expectations at $5.98. According to The Wall Street Journal: After a significant increase in users in the fourth quarter of last year, Netflix raised prices for its existing plans in the U.S. to capitalize on the surge in demand.

Public Company Financial Reports

UMC: Q4 revenue is $1.84 billion, a year-on-year increase of 9.9%, which is $10 million lower than market expectations; net profit is $259 million, a year-on-year decrease of 35.6%; diluted EPS is $0.10, below the market expectation of $0.15.

New Oriental: Q2 of fiscal year 2025 net revenue is approximately $1.039 billion, a year-on-year increase of 19.4%; net profit attributable to the company is $31.93 million, a year-on-year increase of 6.2%.

Ford Motor is facing an investigation by the U.S. National Highway Traffic Safety Administration (NHTSA).

The automaker's BlueCruise "hands-free" autonomous driving technology was involved in a collision.

Trump signs order granting TikTok a 75-day grace period for the ban, China's Ministry of Foreign Affairs responds: We hope the U.S. side can seriously listen to rational voices.

TSMC: Confident that the Trump administration will continue to fund TSMC's investment plans in the U.S.

CFO Huang Ren-Chao stated that $1.5 billion in U.S. government subsidies were received in the fourth quarter of last year, and he is confident that the Trump administration will continue to fund TSMC's investment plans in the U.S