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<h3>Overnight Market Update</h3>
Tech giants drag down US stocks, small-cap and chip indices underperform the broader market, Chinese concept stocks halt three-day winning streak
After the long weekend with Monday off, the US stocks, which fell for two consecutive days last Thursday and Friday, accelerated their decline on the first trading day of the week. The main driver of the market, tech stocks, led the downturn since the beginning of the year. The tech giants, known as the &#34;Big Seven,&#34; all fell during the trading day. The Nasdaq fell by 0.92%, the S&amp;P 500 dropped by 0.6%, and the Dow Jones Industrial Average declined by 0.17%.
Netflix dropped by 1.5%, Amazon fell by 1.4% for the third consecutive day, Meta declined by 0.3%, Microsoft and Apple fell by 0.3% and 0.4% respectively, with Microsoft falling for three consecutive days and Apple for six consecutive days. Alphabet-C rose by 0.3%. Tesla dropped by 3.1%.
NVIDIA fell by over 6.7% intraday, closing down nearly 4.4%, marking a three-day decline. NVIDIA's single-day market value shrinkage set a record, decreasing by $78 billion. The market seemed cautious before the chip manufacturer released its earnings report. HSBC analyst Frank Lee raised NVIDIA's target price from $800 to $835 this week and maintained a &#34;buy&#34; rating. However, he played down the expectations for NVIDIA's profit growth, predicting that NVIDIA's sales would meet market expectations.
Arm fell by 5.1%, AMD dropped by 4.7%, and Intel rose by 2.3%. Overall, AI concept stocks continued to fall significantly, underperforming the broader market for several days. Super Micro Computer (SMCI) fell by 13.8% at midday and closed down by nearly 2%. C3.ai dropped by almost 5.9%.
Popular Chinese concept stocks fell overall. Ganfeng Lithium fell by over 6%, Ebang International by over 7%, XPeng by over 5%, JD.com by over 4%, GSX Techedu by over 3%, Nio and Pinduoduo by nearly 3%, Baidu and Bilibili by over 1%, Alibaba by around 1%, NetEase by 0.1%, and Li Auto rose by nearly 0.6%.
Ethereum broke through $3,000 for the first time since May two years ago, and Bitcoin briefly surpassed $53,000.
<h3>Blue Chips and Hot Stocks</h3>
Amazon will be added to the Dow Jones Industrial Average. Uber will be added to the Dow Jones Transportation Average.
Media: Microsoft is developing an alternative to NVIDIA graphics cards, which may help OpenAI increase computing power.
Adobe launches a beta version of an AI assistant.
Musk says the first Neuralink brain-machine interface test subject is close to recovery and can control a mouse with their mind.
Musk nominated for Nobel Peace Prize
Norwegian parliamentarian Marius Nielsen nominated Musk as a candidate for the Nobel Peace Prize, praising Musk for providing Starlink satellite internet connection to Ukrainian soldiers after the Russia-Ukraine conflict erupted two years ago.
Anchorage Capital, Blackstone Group, and others are reportedly considering bidding for Sanofi's (SNY.O) consumer health business, with an estimated value of around $20 billion. Sanofi (SNY.O) is reportedly open to selling its potential consumer health business.
TrendForce: BYD is expected to challenge Tesla for the global sales crown of pure electric vehicles this year, surpassing Tesla.
Stellantis to Produce Zero Run Electric Vehicles in Italy? Zero Run Cars Yet to Respond
Reports suggest that Stellantis Group is considering producing Zero Run brand electric vehicles at the Mirafiori plant in Italy, with a planned production capacity of 150,000 units. This project is expected to commence production as early as 2026 or 2027, and the production of Zero Run products at this factory is part of an agreement between Stellantis Group and Zero Run Cars (Leapmotor).
Taobao responds to opening WeChat Pay: Currently only available for selected users and orders, will be fully rolled out in the future.
Huawei unveils &#34;AI Brain&#34; for storage.
Xiaomi's Lei Jun: Xiaomi Pad 6S Pro will be launched on February 22nd at 19:00, pre-installed with Xiaomi's Surge OS.
ByteDance denies launching a Chinese version of Sora: Boximator is still not ready to be launched as a complete product.
Google continues to lay off thousands of employees, including voice assistants, hardware, engineering, and advertising sales teams.
Walmart to acquire smart TV brand Vizio for $11.5 per share in cash.
Meta Platforms COO Olivan sells $3.93 million worth of stocks, with the company's stock price rising by 23% in the past month.
Jia Yangqing: Groq's AI Chips Cannot Replace NVIDIA
A company named Groq made waves in the AI circle today with one move: speed. Jia Yangqing, former Facebook AI scientist and former Vice President of Technology at Alibaba, stated that Groq's small memory capacity (230MB) requires 305 Groq cards to run the Llama-270b model, while only 8 cards are needed with H100. At current prices, this means that at the same throughput, Groq's hardware cost is 40 times that of H100, and the energy cost is 10 times.
Berkshire Hathaway's 2023 annual report will be released on February 24th.
<h3>Macro: Taking You Around the World</h3>
UBS Raises S&amp;P 500 Index Target to 5400 Points
Following the outlook on the U.S. stock market released in December last year, UBS has raised its forecast for the S&amp;P 500 Index by the end of 2024 for the second time this year, citing strong demand reflected in economic strength and inflation data. The new target implies an increase of about 8% from last Friday's closing price.
U.S. House of Representatives Establishes Bipartisan AI Special Working Group
The working group will &#34;explore how Congress can ensure that the United States continues to lead the world in AI innovation, while considering appropriate guardrails to protect the country from current and emerging threats.&#34;
The White House announced significant sanctions against Russia to be unveiled on Friday.

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Tech giants drag down US stocks, with small-cap and chip stock indices underperforming the broader market. NVIDIA has fallen for three consecutive days. Taobao opens up WeChat Pay. Huawei unveils its storage "AI brain". Alphabet-C continues to lay off thousands of employees. Amazon will be included in the Dow Jones Industrial Average. Uber will be included in the Dow Jones Transportation Average. Stellantis will produce Zero Run electric cars in Italy. Musk nominated for the Nobel Peace Prize. UBS raises Pro UltrPro Shrt S&Pro 500 target to 5400 points.

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NVIDIA

Breakfast | NVIDIA's single-day market value shrinkage hits a record, Microsoft develops NVIDIA network card alternatives.