Core Viewpoint - The Hong Kong stock market has outperformed the US stock market, with a strong bullish sentiment towards Chinese assets, indicating a shift in investment focus from the West to the East [1][2]. Market Performance - Since April 8, notable gains have been observed in major Chinese companies listed in Hong Kong, including Xiaomi Group (up 50%), Tencent Holdings (up 20%), Hong Kong Exchanges (up 32%), and BYD (up 40%) [1]. - The Hang Seng Index is approaching the 25,000 mark, rewarding investors who bought on dips [1]. - The "new consumption trio" in Hong Kong, consisting of Mixue Group, Pop Mart, and Laopuhuangjin, has seen their market capitalizations exceed HKD 1 billion, with significant year-to-date stock price increases of over 100% [3]. Investment Trends - The ongoing trend of "East Rising, West Falling" suggests that Chinese assets are becoming more attractive compared to US assets, with a potential for both markets to rise, but with Chinese assets expected to yield higher returns [1][2]. - The successful IPO of CATL has boosted market confidence and is expected to enhance liquidity in the Hong Kong market [2]. Market Sentiment - There is a notable divergence in sentiment between retail and institutional investors, with retail investors in the US reportedly buying on dips while institutions in Hong Kong are accumulating shares [3]. - The short-selling pressure in the Hong Kong market is significant, indicating a potential for a short squeeze as major Chinese stocks recover [2][3]. Company-Specific Insights - Tesla's sales data from China is under scrutiny, with a significant drop in global deliveries and concerns about brand image affecting investor sentiment [4][5]. - Nvidia's recent announcements at Computex indicate a clear path to growth in the second half of the year, with a focus on AI communication infrastructure [6][7].

Core Insights - Morgan Stanley's report indicates that Nvidia's path to returning to growth in the second half of the year is becoming clearer, despite no major surprises from the Computex keynote [1] - Several mid-term concerns that previously troubled the market, such as customer digestion cycles and GB200 bottlenecks, are being resolved [1][7] - Nvidia's new NVLink Fusion technology expands ecosystem compatibility and is expected to boost communication infrastructure revenue, although its impact on ASIC competition needs further evaluation [1] Product Developments - Nvidia introduced several key products at Computex, including the RTX PRO server for enterprise AI inference, which can be configured with up to 8 Blackwell RTX Pro Graphics 6000 cards [2] - The company updated its robotic foundational model, Isaac GR00T, to include a synthetic data generation framework for humanoid robot training [2] - Upcoming products include the DGX Spark personal workstation, set to launch in July, and the DGX Station later this year [2] Financial Outlook - Morgan Stanley projects an earnings per share of $5.70 for fiscal year 2025, assigning Nvidia a "buy" rating with a target price of $160, which is above the semiconductor industry average [2] - Nvidia's stock has risen over 40% from its year-to-date low, reaching $135.57 [2] Challenges and Resolutions - Nvidia faces several short-term challenges, but many mid-term concerns are being addressed, including the establishment of a new supercomputer with Foxconn and TSMC as a key R&D customer [4][5] - The customer digestion cycle has stabilized, and the collaboration ecosystem between cloud providers and LLM suppliers is improving [7]