Core Viewpoint - The company aims to introduce more advanced chips into China, emphasizing the continuous progress in technology [1] Group 1 - The current Hopper architecture is performing well, with the H20 utilizing this architecture [1] - The company anticipates that in the coming years, it will have increasingly better technologies available [1] - Regardless of the products the company is allowed to sell in China, the quality of products will improve over time [1]

Core Viewpoint - Nvidia's stock has rebounded significantly after a dip in April, driven by its involvement in large-scale AI investments in the Middle East, indicating strong growth potential despite concerns about future growth rates [1][4][5]. Group 1: Nvidia's Market Position and Growth - Nvidia's CEO Jensen Huang emphasized the advanced capabilities of the new Blackwell architecture chips, which are set to replace the older Hopper architecture, highlighting the company's commitment to innovation in AI technology [1]. - The establishment of a research lab in China and the design of compatible AI chips for the Greater China market signal Nvidia's intent to maintain growth in this region, despite geopolitical challenges [2]. - Nvidia's anticipated EBITDA multiple is 26 times, which is significantly lower than its 10-year average of 33.7 times, suggesting that the market may not fully recognize its growth potential in the Middle East [8]. Group 2: Market Sentiment and Analyst Perspectives - Wall Street remains cautious about whether Nvidia's ambitions in the Middle East will translate into strong growth opportunities, with expectations of a slowdown in growth rates by the fiscal year 2027 [4][5]. - Analysts predict that Nvidia's growth rate for the quarter ending in April will exceed 65%, a notable decrease from the previous year's 260% growth, indicating potential challenges ahead [5]. - Despite the optimism surrounding Nvidia's AI capabilities, there are concerns about the ability of large-scale companies to replicate successful AI infrastructure deployments in the Middle East, which could pose execution risks [6]. Group 3: Competitive Landscape and Risks - The increasing competition from large-scale companies seeking to reduce reliance on Nvidia for custom chips may pose risks to Nvidia's market dominance [9]. - Nvidia's data center revenue constitutes nearly 90% of its total revenue over the past 12 months, making it particularly vulnerable to any unexpected downturns in AI growth compared to competitors with less exposure to AI [9].

Group 1 - The article emphasizes the need to accelerate the transformation and upgrading of traditional industries while actively developing strategic emerging industries, particularly in digital economy and new energy sectors [1] - NVIDIA's CEO highlighted significant growth in chip purchases by major US cloud service providers, with expectations for data center capital expenditures to exceed $1 trillion by 2028 [1] - International precious metals futures saw a general increase, with COMEX gold futures rising by 1.18% to $3041.7 per ounce and COMEX silver futures increasing by 1% to $34.65 per ounce [1] Group 2 - Gold prices continue to reach new highs, driven by lower-than-expected retail sales growth in the US and ongoing inflation concerns [2][18] - The market is pricing in more interest rate cuts from the Federal Reserve, despite the central bank's indication that it will not lower rates in the near term [2][18] - Geopolitical tensions in regions like Ukraine and the Middle East contribute to rising recession expectations, further supporting gold's strong performance [2][18] Group 3 - The oil market is under pressure due to protectionist policies from the US, which have disrupted global markets and led to increased tariffs on oil imports from Canada and Mexico [3][10] - The overall sentiment in the oil market remains bearish, with expectations of increased supply if geopolitical conflicts resolve sooner than anticipated [3][10] Group 4 - The article reports a decline in the New York Fed's service sector business activity index, reaching its lowest level in over a year [4] - The Chinese market regulatory authority has released new guidelines to enhance fair competition, specifying prohibited behaviors [5] Group 5 - The article discusses the establishment of a green energy consumption promotion mechanism by five government departments, aiming to accelerate renewable energy project development [6]

Core Viewpoint - Morgan Stanley expresses confidence in Nvidia's future despite recent challenges, indicating that the strong demand for Blackwell architecture chips will continue and that the current pressure on gross margins is temporary [2][4][5]. Group 1: Transition Period and Demand - Nvidia is currently in a product transition phase, with the previous Hopper architecture still dominating revenue, while the new Blackwell architecture faces unprecedented complexities. Despite this, Nvidia achieved an 18% quarter-over-quarter growth, exceeding expectations by $2 billion, which is unprecedented in the semiconductor industry [7]. - The demand for Blackwell chips is expected to remain strong through the end of the year, supported by statements from major tech companies and key technology experts [8]. Group 2: Gross Margin Concerns - The pressure on gross margins is seen as temporary, primarily due to additional costs associated with the accelerated rollout of Blackwell chips, such as shorter testing processes and higher wafer costs [10]. - Nvidia's management is confident that gross margins will recover to 75%, with expectations for margins in the second quarter of 2025 to be similar to the first quarter, gradually improving in the second half of the year [11]. Group 3: AI Spending Cycle - Morgan Stanley has raised its revenue forecast for Nvidia, projecting $196.746 billion for fiscal year 2026 and increasing the growth rate for fiscal year 2027 from 14.6% to 17% [13]. - The firm believes that AI spending is cyclical rather than a bubble, with market enthusiasm expected to reignite in the next 6-9 months, despite current cooling sentiments [14][15].