Nvidia’s Reign Over? AI Chip Rally Ignites!

● Nvidia’s Reignited

June 2024 Global Stock Market: All Eyes on AI Semiconductors, US-China Issues, Earnings, and Solar Stocks

Key Contents Covered in This Article:

– The story of the Nasdaq/US stock market surging on AI semiconductor supply contract news
– Nvidia’s large supply contract in the Saudi AI market and its long-term revenue impact
– US inflation status and outlook, including consumer prices and core CPI
– Analysis of the impact of US-China tariff adjustments on the market
– Major corporate earnings announcements and trends in stock indices such as the S&P 500
– Detailed analysis of investment trends, including positive news for the solar and renewable energy sectors
– A comprehensive overview of Trump issues, economic forecasts, and a review of this year’s stock market

AI Semiconductor Concentration: Nvidia and Saudi Big Deal

The Nasdaq surged by 1.88%, and Nvidia’s stock price rose by over 6%.
This surge was driven by large-scale supply contracts for AI semiconductors from Nvidia and AMD.
In conjunction with Trump’s visit to Saudi Arabia, Nvidia will supply over 18,000 units of the latest AI GPU chip, GB300, to Saudi companies like Humane.
The revenue is estimated at around $1 billion (1.4 trillion won).
This is just the tip of the iceberg.
Nvidia is expected to supply hundreds of thousands of units in the long term for Saudi data center expansion, potentially generating tens of trillions of won in revenue.
This major contract news has once again highlighted the trust and expectations for the AI industry and artificial intelligence semiconductors in the market.

US Inflation and Interest Rate Outlook, Fed Policy Change Points

Both the Consumer Price Index (CPI) and Core CPI announced in April were better than consensus.
Core CPI rose by 2.8%, and overall CPI rose by 2.3% year-on-year.
The recent slowdown in inflation has strengthened expectations for a Fed interest rate cut.
However, it still falls short of the target, requiring further declines.
Some investment banks believe that external variables such as tariff changes have not yet been fully reflected in prices.

Easing Signals of US-China Trade Conflicts and Tariff Cuts, Opportunities for Stock Price Rebound

Recently, tariffs on low-priced imports from the US and China (Temu, Shein, etc.) have been reduced from 120% to 54%.
Although not as much as before, the atmosphere of US-China conflict is easing.
Investment banks, which had been continuously lowering corporate earnings forecasts, have recently significantly raised their forecasts positively.
This creates psychological stability across the market and fosters a positive atmosphere for growth stocks and global stocks.

S&P 500, US Corporate Earnings, and Global Stock Market Boom

In the first quarter, 77% of S&P 500 stocks reported an ‘earnings surprise’.
Forecasts had been adjusted negatively due to tariff burdens, but have recently been significantly revised upwards.
Actual earnings have been strong, leading to a positive reversal in both the US and global stock markets.
The US stock market is being driven by IT, renewable energy, and trending industries.

Re-evaluation of Solar and Renewable Energy Sectors

There were concerns about a sharp reduction in subsidies for solar companies in the draft Republican tax bill in the US House of Representatives, but in reality, the cuts were not as significant as expected.
Major solar stocks like First Solar soared by over 22%.
Uncertainty in renewable energy policy has been partially resolved, increasing expectations for the growth of the eco-friendly industry.
Stocks related to the global eco-friendly energy keyword are also participating in the upward trend.

Trump’s Remarks, Overall Market Outlook, and Changes in Investment Sentiment

Trump fueled the atmosphere in his speech in Saudi Arabia, saying, “The stock market will rise further.”
Traditionally, stock prices often turn positive whenever Trump makes such remarks.
In fact, after overcoming the mixed trend at the beginning of this year, the US S&P 500 began to maintain a positive trend compared to the previous year.
Global investment sentiment is improving, and growth rate forecasts are poised to be raised.

Future Investment Strategies and Checkpoints

The market trend is expected to continue, focusing on AI, semiconductors, renewable energy, and global leading stocks.
It is necessary to confirm whether the bullish atmosphere in the US stock market and the improvement in earnings are fully underway.
Market response strategies are needed while continuously checking external variables such as tariffs, interest rates, and policies.
Focus on long-term growth industries such as platforms, big tech, and clean energy.

< Summary >
The global stock market is experiencing tailwinds due to large AI semiconductor (Nvidia) contracts, favorable US inflation, easing US-China trade conflicts, strong S&P 500 earnings, and relief in renewable energy policies. The actual corporate value and investment outlook are also changing positively, and innovative industries such as AI, semiconductors, and solar power are expected to lead the stock market in the future. Trump's issues are also igniting changes in market sentiment.

2024 Global Stock Market Situation Summary (SEO Optimized)

AI semiconductors, especially Nvidia, lead the market with large supply contracts with Saudi Arabia.
US inflation index declines and changes in Fed interest rate outlook highlight inflation issues.
Improved global economic sentiment and flexible trade policies due to easing US-China trade conflicts.
Upward revisions in US stock market and global economic forecasts, centered on the S&P 500, with strong earnings.
Eco-friendly stocks are strong due to favorable renewable energy (solar, etc.) policies.