Core Viewpoint - Nvidia is expected to report earnings on November 19, with performance in line with expectations and guidance stronger than anticipated, driven by Blackwell and RTXPro [1] Group 1: Earnings Forecast - Estimated revenue for the January quarter is $64.5 billion, with guidance of $62.5 billion, compared to consensus of $61.7 billion, driven by continued demand for Blackwell [2] - For the October quarter, revenue is estimated at $55.9 billion, exceeding consensus of $55 billion, based on the sales of 1.4 million Blackwell units and a small contribution from Hopper [2] Group 2: Business Growth Potential - Nvidia's Networking business is projected to grow over 90% year-on-year in FY27, supported by aggressive plans for Spectrum-X and NVLinkFabric [3] - The company has set ambitious deployment plans for its CY26 Ethernet switches, with Spectrum-X ARR reaching $10 billion [3] Group 3: Product Development and Client Base - The company anticipates strong demand from clients such as P, Neocloud, and startups, despite potential competition from Google and AWS [2] - Progress on Rubin and VR200NVL144 is on track, with expected production capacity of 377,000 and 630,000 units in 2025 and 2026, respectively [2]

Inflation Data - The Consumer Price Index (CPI) rose by 0.3% month-on-month and 2.7% year-on-year, marking the highest level since February [2] - Core CPI, excluding volatile food and energy prices, increased by 0.2% month-on-month and 2.9% year-on-year, aligning with expectations [2] - Automotive prices fell, with new car prices down 0.3% and used car and truck prices down 0.7%, while clothing prices rose by 0.4% and household goods prices increased by 1% [4] - Housing prices rose by 0.2% month-on-month and 3.8% year-on-year, remaining the largest contributor to the overall CPI increase [4] - Food prices increased by 0.3% month-on-month and 3% year-on-year, while energy prices rose by 0.9% month-on-month but were slightly down year-on-year [4] Federal Reserve Response - The inflation data may lead Federal Reserve officials to remain cautious, especially regarding the impact of tariffs on prices [5] - The overall inflation trend had been declining prior to June, with a year-on-year CPI increase of 3% in January [5] - Following the data release, stock market performance was mixed, with the Dow Jones down 0.1%, S&P 500 up 0.36%, and Nasdaq up 0.73% [5] Federal Reserve Leadership - President Trump has been pressuring the Federal Reserve to lower interest rates, asserting that tariffs will not exacerbate inflation [6] - The selection process for a potential successor to Federal Reserve Chairman Jerome Powell has officially begun, as stated by Treasury Secretary Scott Bentsen [8][9] - Bentsen indicated that the pace of this process will be determined by President Trump [10] Nvidia Developments - Nvidia's stock surged over 4%, with a market capitalization exceeding $4.1 trillion, following the approval of H20 export applications to China [12] - H20 is a customized AI accelerator card designed for the Chinese market, aimed at inference and small to medium model training scenarios [12] - Nvidia also announced the upcoming release of a new graphics card named RTXPro, targeting professionals in various fields including architecture and AI [12]

Group 1 - The core driver of the Hong Kong stock market's strong performance today is the continuous explosion in AI computing power demand, with the Hang Seng Index closing up 1.60% and the Hang Seng Tech Index up 2.80% [2] - The trading volume of the Hang Seng Index exceeded HKD 288 billion, indicating a significant recovery in market sentiment [2] - In the US market, Chinese concept stocks saw a collective rise, with Kingsoft Cloud up over 15%, GDS Holdings up over 12%, and Alibaba up over 6% [2] Group 2 - The computing power sector experienced a surge, with multiple related themes in both Hong Kong and A-shares markets, including CPO concepts and optical communication [3] - Notable stocks in the computing power sector included Kingsoft Cloud, GDS Holdings, and others, all rising over 10%, with Alibaba increasing nearly 7% [3][4] Group 3 - NVIDIA has received US approval to resume sales of its H20 chip in China, which is designed to comply with US export restrictions and is tailored for the Chinese market [5][6] - The H20 chip is based on NVIDIA's Hopper architecture and is expected to alleviate the domestic computing power "chip shortage" [6] - NVIDIA's stock surged over 5% in pre-market trading following this news, reaching a historical high [6] Group 4 - The AI narrative is expected to reignite as NVIDIA's market capitalization surpasses USD 4 trillion, leading to renewed interest in AI computing power sectors [8] - Alibaba plans to invest CNY 380 billion in AI and cloud infrastructure over the next three years, marking the largest investment by a private Chinese company in this field [8] - The global AI industry is experiencing rapid growth, with increasing demands for data center computing resources and storage capabilities [9]