Breakfast | Aggressive analyst predicts NVIDIA to reach $1200, value investor says AI is causing "a bubble within a bubble."

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Overnight Market Update

Chinese concept stocks hit a new high for the year, NVIDIA up by 7%

The core CPI strengthened the expectation that the Federal Reserve will be cautious about interest rate cuts. The three major U.S. stock indexes opened higher and closed higher, collectively rising for the first time this week, with the largest increase since NVIDIA's earnings report on February 22. The S&P 500 rose by 1.12%, the Nasdaq rose by 1.54%, and the Dow rose by 0.61%.

Tesla fell by over 0.1%, while Meta, Microsoft, Amazon, and Netflix, which had fallen for two consecutive days, closed up by 3.3%, nearly 2.7%, about 2%, and 1.7% respectively. Alphabet rose by 0.6% for the fourth consecutive day, and Apple rose by nearly 0.3% for the third consecutive day.

Chip stocks rebounded after two consecutive days of decline. NVIDIA rose by nearly 7.2%, TSMC rose by nearly 3.9%, and AMD rose by 2.2%. AI concept stocks did not rise across the board. SoundHound rose by 15.9%, Super Micro Computer (SMCI) rose by 7.7%.

The Chinese concept stock index, Nasdaq Golden Dragon China Index (HXC), rose by nearly 4%, rising for three consecutive days. Li Auto rose by nearly 9%, Pinduoduo rose by 5.6%, JD.com rose by about 5%, Baidu, Tencent Music, rose by nearly 4%, XPeng rose by over 2%, Alibaba, Nio, NetEase rose by over 1%, and Bilibili rose by 0.6%.

Oracle (ORCL) closed up by over 11.7%, reaching a new historical high, with profits in the previous quarter exceeding expectations, and cloud computing revenue growing by 25% year-on-year.

Blue Chips and Hot Stocks

The privatization rumors caused a stir, Li Ning responded: unaware of the reason for the stock price movement, no insider information.

12 commercial banks raising 80 billion for Vanke? A source close to the banks: heard about the information, but the banks are currently taking a cautious stance.

Apple has started developing a MacBook Pro with an M4 chip, and is expected to continue exploring augmented reality glasses, AirPods with AI and cameras, generative AI, and products with robot-like functions.

Apple's blood oxygen feature can be reactivated through software by 2028 or after a successful appeal

Medical technology company Masimo, which accused Apple of infringement, tested that the "redesigned" Apple Watch paired with iPhones running older versions of iOS can activate the pulse oximeter. This means that Apple can also reactivate the disabled blood oxygen sensor on affected models through software updates. The patent in question will expire in August 2028, allowing Apple to reactivate the feature on affected models, or if Apple's current appeal to the authorities is successful, the feature may be reactivated sooner.

Market news: IBM to lay off employees in marketing and communications departments

Nikkei News: Nissan is considering a 30% reduction in production in China; Honda is also considering a reduction of about 20% in production in China.

Media: Boeing 787 safety whistleblower died by "suicide" on the day of testifying in court

Chips and Artificial Intelligence

Cantor Fitzgerald analyst C.J. Muse raised NVIDIA's target price from $900 to $1200, indicating a 37% upside potential.Market News: The US Department of Defense cancels a $2.5 billion chip subsidy plan for Intel.

Semiconductor company SiFive plans to compete with Arm in the chip design market, aiming to sign a $180 million perpetual royalty agreement this year. The company expects authorized revenue to increase from $38 million to $60 million by 2024.

Italy hopes that STMicroelectronics will increase its investment share in the country.

Media: Samsung Electronics plans to introduce "MUF" chip manufacturing technology to produce HBM chips for AI chipsets.

Value investor Grantham: AI has triggered a "bubble within a bubble," and the outlook for US stocks is very bleak.

Cryptocurrency

Bitcoin briefly surged above $73,000, then fell below $70,000, while Ethereum dropped below $3,900 per coin.

The Hong Kong Monetary Authority launches a "sandbox" for stablecoin issuers.

Market News: Coinbase will issue $1 billion in 2030 convertible senior notes.

Grayscale Investments previously transferred approximately 7,126 BTC worth over $500 million to Coinbase Prime.

Grayscale Investments applies to split its Bitcoin spot ETF - Grayscale Bitcoin Trust (GBTC) - to provide investors with a lower-cost Bitcoin investment product.

A report from CoinShares International shows that $2.7 billion flowed into crypto assets last week, hitting a record high, with most of it going to Bitcoin. So far this year, the prices of Bitcoin and the top 100 tokens have risen by about 70%.

IPO Opportunities

MGM Group applies to issue 225 million shares through a Hong Kong IPO, with an indicative price range of HK$3.30-4.30 per share, with trading expected to start on March 21.

Macro: A Global Perspective

The overall CPI in the US unexpectedly rose in February, with the core CPI index, excluding the volatile food and energy prices, exceeding expectations for the second consecutive month, with a MoM increase of 0.4%, matching January.

The market is concerned that more Federal Reserve officials will adjust their interest rate cut expectations to twice this year.

Apollo: Expects the Federal Reserve to stand pat next week and start cutting rates in June.

Chairman of the Financial Services Commission of South Korea: South Korea is considering reducing the dividend income tax.