Breakfast | Trump's delay in imposing tariffs on Mexico failed to save the market! Micron plunged 20%, leading the decline in AI stocks

Market Overview

Investors are concerned about U.S. economic growth and AI investment prospects. Trump's tariff concessions failed to quell pessimism, with the Nasdaq falling over 4% this week, officially entering a 10% correction zone.

Affected by the impact of DeepSeek and Alibaba's latest AI achievements, the U.S. AI boom is cooling down. Investors are closely monitoring tech company earnings reports to assess the sustainability of AI trades. Micron Technology's revenue guidance fell short of the highest expectations, with its stock price plunging over 20% during intraday trading, dampening market sentiment.

Software stock MongoDB fell about 27%, Applovin dropped 18.36%, BigBear.AI decreased by 12.5%, with Q4 revenue below expectations and losses exceeding expectations. It is expected that adjusted EBITDA will be in the negative single digits this year, with U.S. stocks at one point dropping over 16% after hours.

The seven major tech giants all fell, with NVIDIA down 5.74%, Tesla down 5.61%, Meta down 4.35%, Amazon down 3.68%, Microsoft down 1.03%, Google A down 0.39%, and Apple down 0.17%.

However, Broadcom's optimistic earnings guidance after hours eased some AI investors' concerns, with Q2 revenue exceeding expectations. Its stock price surged over 17% at one point, leading NVIDIA to turn positive after hours.

China National People's Congress Press Conference: Responding to the U.S. with "an eye for an eye," plans to cut reserve requirement ratio and interest rates at an opportune time this year

Key points from the Q&A include: The People's Bank of China will cut interest rates and reserve requirement ratios at an opportune time this year; plans to establish a venture guidance fund to support large tech companies in issuing bonds; the Ministry of Finance has "ample" policy tools and room to respond to uncertainties; a special action to promote consumption will be introduced; and if the U.S. further increases tariffs, there will be corresponding responses.

Trump Concedes, Delays Tariffs on Mexican Goods Under USMCA Until April 2

According to CCTV News, on Thursday, March 6, local time, U.S. President Trump signed an amendment to tariffs on Mexico and Canada, exempting products that comply with the "United States-Mexico-Canada Agreement" (commonly referred to as USMCA) from tariffs until April 2.

Before Trump's announcement of the exemption for Mexican products, U.S. Secretary of Commerce Wilbur Ross stated that all goods and services that comply with the USMCA could be exempt from tariffs.

Trudeau later stated that Canada would not remove retaliatory tariffs unless the U.S. first cancels all increased tariffs.

Trump: Delay of Tariffs on Mexico Unrelated to Stock Market, "Didn't Even Look at the Market"

Trump stated during a press conference at the White House that the decision to delay tariffs on trade with Canada and Mexico under the USMCA is unrelated to the performance of the U.S. stock market. Trump said he "didn't even look at the market" because the U.S. will be strong in the long run.

When asked about his views on the U.S. stock sell-off, Trump stated that the culprits behind the decline are "globalists." "Those globalists foresee how wealthy our country will become, and they don't want to see that happen."

Broadcom's Earnings Exceed Expectations, Surging 17% After Hours

The earnings report showed that Broadcom's revenue for the first fiscal quarter was $14.92 billion, a 25% year-on-year increase, exceeding analysts' expectations of $14.61 billion; adjusted EPS was $1.60, higher than the analysts' expectation of $1.50 At the same time, Broadcom expects second-quarter revenue to be approximately $14.9 billion, a year-on-year increase of 19%, exceeding analysts' expectations of $14.59 billion; it is anticipated that second-quarter AI semiconductor revenue will reach $4.4 billion, sending a strong signal to investors that AI computing spending remains robust, which stimulated the company's stock price to rise by as much as 17% in after-hours trading.

Analysts believe that Broadcom's latest financial report indicates that the historic spending boom in the AI sector continues. As the complexity of AI computing tasks and personalized demands increase, large technology companies will further turn to custom chips instead of relying on standard chips, a trend that is expected to allow Broadcom to continue benefiting.

"AI Chip Popularity" Marvell Technology Stock Price Plummets 20%

Marvell expects first-quarter sales to be approximately $1.88 billion, which, while in line with average expectations, falls short of the highest expectation of $2 billion. Analysts believe that this financial report does little to ease market tensions regarding AI stocks.

During the conference call, the company stated that ASICs account for 25% of data center business revenue, and AI revenue for fiscal year 2026 will significantly exceed the $2.5 billion target. The company is steadily progressing towards its goal of capturing a 20% market share in the global data center business, while the total market size is also developing towards $75 billion, currently growing faster than expected. Additionally, the company's optical business is strong, with a significant increase in orders in the second half of last year and robust demand this year.

JD.com Q4 Net Profit Increases 190.8% Year-on-Year, Plans to Repurchase Up to $5 Billion in Stock Over the Next 36 Months

JD.com's Q4 revenue grew 13.4% year-on-year, marking the fastest growth rate in nearly three years; operating profit increased by 319.3% year-on-year. The continuous improvement in profitability is mainly attributed to the company's optimization in cost control and operational efficiency. JD.com's stock price rose by 10% in pre-market trading but later retraced most of its gains.

JD.com stated during the conference call that policy support has boosted consumption, and the company expects profit margins to steadily improve, targeting high single digits. Instant retail is an extension of the core retail business, and delivery services, as a high-frequency business, can enhance user stickiness. JD.com will continue to optimize its delivery network to improve overall retail efficiency.

Alibaba Open Sources QwQ-32B, Comparable to DeepSeek R1 Performance with 1/21 Parameters, Cost Only 1/10

The QwQ-32B large language model has only 32 billion parameters, which can not only compete with the DeepSeek-R1 with 671 billion parameters (of which 37 billion are activated) but also surpass it in certain tests. The breakthrough of QwQ-32B will further promote the paradigm shift of AI large models from "great power produces miracles" to "delicacy produces wisdom," breaking some people's overly pessimistic views after GPT-4.5 hit a wall.

European Central Bank Cuts Interest Rates as Expected, Lowers Rates by 25 Basis Points, Suggests Easing Cycle May Be Nearing Its End

On Thursday, the European Central Bank lowered the deposit facility rate from 2.75% to 2.5%, marking the sixth rate cut since June of last year, but also hinted that the rate-cutting cycle may be nearing its end as inflation cools and the economy digests the severe changes in geopolitics. Traders have reduced their expectations for further rate cuts by the European Central Bank, anticipating a further cut of 41 basis points by the end of the year