Breakfast | NVIDIA's market value exceeds the total market value of all stocks in Germany, Tesla no longer mentions the sales target of 20 million vehicles

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Overnight Morning Market

The minutes of the Federal Reserve meeting suggested that Fed policymakers need to wait longer before considering a rate cut, and recent data has dampened market expectations for a rate cut. The initial value of the U.S. May Composite PMI published by S&P Global exceeded expectations, rising to 54.4, indicating the fastest expansion in business activity in over two years. The three major indices collectively fell for two consecutive days. The Dow fell by 1.53%, the S&P 500 fell by 0.74%, and the Nasdaq fell by 0.39%.

Nvidia opened up more than 7%, rising by as much as 12% intraday, reaching a new intraday historical high, and closing up by 9.3%, breaking the $1000 mark for the first time in history. The net worth of the company's CEO, Huang Renxun, reached $91.3 billion, ranking 17th on the global rich list.

Nvidia's market value has reached $2.6 trillion, surpassing the total market value of all listed companies in Germany (approximately $2.51 trillion). German companies such as BMW, SAP, and Volkswagen had sales of €2.96 trillion and a profit of €121.56 billion last year. Nvidia's sales in the past 12 months were $79.7 billion, with a profit of $42.6 billion.

Tesla fell by 3.5% for two consecutive days. Microsoft fell by 0.8%; Apple fell by 2.1%, Alphabet fell by nearly 1.7%, Meta fell by 0.4%, Amazon fell by 1.1%, and Netflix fell by nearly 0.8%.

Overall, popular Chinese concept stocks continued to decline. Bilibili fell by 12.4%, Beike fell by nearly 10%, NetEase fell by 3.7%, Weibo fell by 0.9%. Nio fell by 8.4%, XPeng fell by 7.4%, Li Auto fell by 5.7%, ZEEKR fell by 2.6%. JD.com fell by 4.5%, Alibaba fell by over 2%, Baidu fell by nearly 1%, Tencent Music fell by 0.9%, and Pinduoduo rose by nearly 4.5%.

Blue Chips and Hot Stocks

Robinhood, the chief broker of US stocks: "Trading volume was huge this week," thanks to Nvidia's performance this week.

Investment banks raised Nvidia's target price

1. Morgan Stanley: Raised Nvidia's target price from $1000 to $1160.

2. Mizuho: Raised Nvidia's target price from $1000 to $1180.

3. Bernstein: Raised Nvidia's target price from $1000 to $1300.

4. Citi: Raised Nvidia's target price from $1030 to $1260.

5. Goldman Sachs: Raised Nvidia's target price from $1100 to $1200.

6. Barclays: Raised Nvidia's target price from $1100 to $1200.

7. UBS: Raised Nvidia's target price from $1150 to $1200.

8. Wells Fargo: Raised Nvidia's target price from $1150 to $1250.

9. Jefferies: Raised Nvidia's target price from $1200 to $1350.

TF International Securities analyst Guo Mingchi: The cost of a foldable screen MacBook may be close to the current Vision Pro Alibaba plans to issue $4.5 billion in convertible bonds and will purchase call options with a 100% stock price increase. According to sources, Alibaba has set a 0.5% coupon rate for the $4.5 billion convertible bonds.

Google announced two new solar power purchase agreements in Japan.

Boeing CFO: Cash flow in the second quarter may be worse than the first quarter. Boeing's delivery volume will not increase in the second quarter and will be close to the level of the first quarter. Due to Chinese regulatory scrutiny of cockpit voice recorder batteries, Boeing's aircraft deliveries to China have been delayed in recent weeks.

Tesla's latest impact report did not mention the goal of reaching 20 million units in sales by 2030. Tesla's Shanghai Megapack factory has officially started construction and is expected to start production in the first quarter of 2025.

Xiaomi Group's partner and president Lu Weibing: Xiaomi's budget for smart driving this year is about 1.5 billion, with a trend of increasing the budget. Xiaomi definitely has a significant advantage in smart driving, and the key to winning lies in whether it is self-developed.

Xiaomi Group President Lu Weibing: There are indeed new car models in development, but the focus is currently mainly on ensuring the delivery of the Xiaomi SU7.

Alibaba's annual report reveals a year of transformation: Taobao consumers have a high retention rate, cross-border business is growing rapidly, Alibaba's international digital business group revenue exceeds 100 billion yuan, a year-on-year increase of 46%. Cainiao Group's revenue increased by 28%. Orders from Ele.me grew strongly year-on-year.

In the first joint shareholder letter, Joseph Tsai and Eddie Wu stated that Alibaba will continue to invest in two main areas: accelerating core business growth and maintaining leadership in foundational technologies, including innovation in AI.

Chips and Artificial Intelligence

Sources: Samsung's HBM chips failed Nvidia's tests due to cooling and power consumption issues.

According to The Information, Meta is developing a paid version of its AI assistant.

South Korea launches a $19 billion chip support plan.

Market news: Google and Meta bid millions of dollars to collaborate with Hollywood in the field of artificial intelligence.

Market news: Coinbase loses in the Supreme Court case related to the Dogecoin controversy.

Cryptocurrency

The U.S. Securities and Exchange Commission (SEC) approves plans by the New York Stock Exchange, Chicago Options Exchange, and Nasdaq for spot Ethereum ETFs. The SEC has not yet fully approved the spot Ethereum ETF and still needs to approve the issuer's plan.

SEC approves key documents for spot Ethereum ETF, formal listing may still take weeks

The U.S. Securities and Exchange Commission (SEC) has approved 19b-4 forms for multiple spot Ethereum ETFs, including ETFs from BlackRock, Fidelity, and Grayscale. However, ETF issuers need their S-1 registration statements to be effective before trading can begin. The SEC has recently started discussions with issuers about their S-1 forms, and it is currently unclear how long this process will take.

According to the SEC website, VanEck has revised their S-1 registration statement for their spot Ethereum ETF.

In early Asian trading, Ethereum briefly reached $3833

Startups

Elon Musk: SpaceX does not need additional funding, in fact, SpaceX will buy back shares.

SpaceX is considering a plan to sell shares, with a valuation of up to $200 billion. Some people have said that SpaceX is discussing a possible tender offer that could launch in June, with the price yet to be determined, but SpaceX is considering selling shares at a price of $108 to $110 per share. The $200 billion valuation is higher than the $180 billion valuation SpaceX received in its most recent tender offer.

French artificial intelligence company LightOn is considering fundraising options including an IPO.

IPO Opportunities

Macro: Taking You Around the World

Traders push back estimate of the first Fed rate cut from November to December

Money markets reduce bets on ECB rate cuts, now expecting a 60 basis point cut this year, down from 67 basis points previously.

UBS lists four factors for S&P 500 to rise to 5500 points

UBS has raised its year-end target for the S&P 500 index from 5,000 points to 5,500 points, and for the first time set a 12-month target at 5,600 points. "The current environment still remains supportive, with the four key positive drivers of the stock market largely still in place: robust earnings growth, declining inflation, Fed policy pivot, and a surge in AI investment."

Nvidia and economic outlook boost, JP Morgan traders say S&P 500 index poised for new highs

With the AI theme still in play and macro assumptions unchanged, we may continue to hit new all-time highs. GDP growth will reach or exceed trend levels, positive earnings, and the Fed staying put are all ingredients for a bull market