Asia-Pacific markets traded mixed on Monday as investors awaited trade data from China due later in the day.Economists polled by Reuters expect China's exports in November to rise 3.8% from a year earlier, reversing the 1.1% contraction in October. Imports are expected to increase 3% in the same period, up from 1% the month before.Japan's benchmark Nikkei 225 slid 0.14%, while the Topix added 0.25%. South Korea's Kospi was flat, and the small-cap Kosdaq traded 0.45% higher.Revisions released by Tokyo on Mon ...

Core Viewpoint - Nvidia's stock has declined by 30% in 2023, leading analysts to reduce growth forecasts as its valuation decreases, now trading at 18.4 times sales, the lowest since 2023 [1] Group 1: Nvidia - Nvidia's shares are down 30% year-to-date, prompting analysts to lower growth expectations [1] - The company's current trading multiple is 18.4 times sales, marking its cheapest valuation since 2023 [1] - Nvidia's revenue growth rate is expected to be nearly double that of Palantir's for the current year, with shares trading at 33.7 times trailing earnings and 22.4 times forward earnings, which are significantly lower than Palantir's valuations [11] Group 2: SoundHound AI - SoundHound AI has a market cap of $3.3 billion and focuses on AI applications related to audible speech, with significant growth potential in the AI voice generator market, projected to grow from $3.2 billion in 2023 to $40 billion by 2032 [4] - The company's revenue reached a record $34.5 million last quarter, reflecting a 101% year-over-year increase, and it trades at 32.5 times sales [5] - Despite its growth potential, SoundHound faces competition from larger tech companies with substantial R&D budgets, which may limit its ability to compete effectively [6] Group 3: Palantir Technologies - Palantir has a market cap of approximately $210 billion and is not a pure-play AI business, but its future growth is expected to be driven by AI investments [8] - The stock recently surged following NATO's adoption of its AI-driven military system, indicating strong confidence in its offerings [9] - Palantir's stock trades at 80.5 times sales, which is considered expensive, even with expected sales growth of around 30% annually for 2025 and 2026 [11]

Core Viewpoint - Nvidia is significantly outperforming AMD in the data center market, but AMD may still present a valuable investment opportunity due to its current low valuation and potential growth in data center revenue [1][2][5]. Data Center Market Insights - Nvidia predicts that data center infrastructure spending will reach $1 trillion annually by 2028, with the potential for Nvidia to capture about 25% of that market [3]. - AMD's data center revenue was approximately $12.6 billion in 2024, which is about one-tenth of Nvidia's $115 billion in fiscal 2025 [3]. - AMD's data center sales could approach $25 billion over the next four years, indicating significant growth potential [3]. AMD's Financial Performance - AMD's total trailing revenue is currently $25.8 billion, suggesting substantial revenue growth in the coming years, even without considering growth from its other divisions [4]. - AMD's stock is trading at a forward P/E ratio of 22, which is competitive with the S&P 500's forward P/E of around 21 [6][8]. - The data center division reported an operating margin of 27.7%, which is the second-best among its divisions, indicating strong profitability potential [9][10]. Growth Potential and Investment Thesis - If AMD's data center revenue growth outpaces other divisions, its operating margins will improve, leading to faster profit growth [10]. - The combination of revenue growth and improving margins could significantly enhance AMD's stock performance, making current prices an attractive entry point for investors [11].

Core Viewpoint - Nvidia's upcoming Q4 2024 earnings report is highly anticipated as investors seek insights into potential demand slowdown for semiconductor chips, particularly in the AI sector, which has significantly boosted the company's valuation to $3.1 trillion [1]. Group 1: Market Position and Challenges - Analysts expect Nvidia to retain its leadership in the AI chip market, but recent developments pose challenges, including Microsoft's cancellation of leases with private data center operators, raising concerns about the sustainability of AI infrastructure investments [2]. - The introduction of China's DeepSeek AI model, which outperformed many US models with lower training costs, has negatively impacted Nvidia's valuation, indicating that new AI models may not require Nvidia's high-end GPUs [3]. - Despite Nvidia's strong past performance, analysts are looking for indicators that the company can adapt to evolving AI demands [4]. Group 2: Future Outlook and Competition - The key question for Nvidia's Q4 earnings is not just financial performance but its ability to maintain market dominance as AI technology evolves, with market reactions dependent on the company's strategies to address emerging challenges [5]. - The launch of DeepSeek may not immediately affect Nvidia but could enable competitors like AMD and Intel to gain market share in the lower end of the AI infrastructure market [5]. - DeepSeek has set a new performance baseline for generative AI, allowing more organizations to explore AI applications [6].