Breakfast | Tesla and NVIDIA lead a surge in tech stocks! Quantum computing stock QBTS once soared nearly 20%

Market Overview

The US CPI eases inflation concerns, tech stocks support the rebound of US stocks!

The S&P 500 index closed up 0.49%. The Dow Jones Industrial Average closed down 0.20%. The Nasdaq closed up 1.22%. The Nasdaq 100 closed up 1.14%.

Tesla closed up 7.59%, rebounding nearly 12% in the last two days, but still down 26.5% in the last month; NVIDIA rose 6.43%, Meta rose 2.29%, Google A rose 1.87%, Amazon rose 1.17%, Microsoft rose 0.74%, while Apple closed down 1.75%.

In the chip sector, Intel rose 4.55%, TSMC rose 3.63%. TSMC suggested investing in Intel's joint wafer fab with NVIDIA, AMD, and Broadcom. After Intel appointed Pat Gelsinger as CEO, Intel surged over 10% in after-hours trading.

Among popular Chinese concept stocks, Bilibili fell 6.5%, XPeng fell 6.11%, ZEEKR fell 6.09%, and Nio fell 2.35%.

Quantum computing concept stock QBTS saw its price soar nearly 20% at one point, ultimately closing up 8%.

US February CPI Surprises with a Broad Decline

The US February CPI rose 2.8% year-on-year, the lowest since November last year; the expected value was 2.9%, and the previous value was 3%.

The US February core CPI rose 3.1% year-on-year, the lowest since April 2021; the expected value was 3.2%, and the previous value was 3.3%.

Analyst Enda Curran stated that it is important that both month-on-month and year-on-year, the US February core CPI was slightly lower than expected.

Traders have increased their bets on the Federal Reserve cutting interest rates, expecting at least two rate cuts this year.

Trump Entrepreneur Roundtable: Clarifying "America Will Recession" Remarks, Tariffs May Increase Exponentially

At the business roundtable on Tuesday, Trump stated that tariffs "are, and will be" having an "extremely positive" impact and indicated that tariffs may increase exponentially. He clarified that he does not deny the rumors of a US recession and expressed confidence in the nation's economic prosperity, stating, "The market will rise and fall," but "we must rebuild our country."

US Commerce Secretary Defends Trump's Policies: Even if it Leads to a Recession, It's "Worth It"

Rutenik believes these policies are aimed at "creating income," "driving growth," and "promoting domestic manufacturing." He stated, "The only reason for a recession is that we have to endure Biden's nonsense."

Countering Trump's Steel and Aluminum Tariffs: EU and Canada Respond with Tariffs, Mexico to Counter on April 2

The EU will impose tariffs on over $28 billion of US goods, fully in place by April 13, while continuing to seek an agreement with the US. Canada will impose a 25% tariff on $20.1 billion of imported US products, effective Thursday. The US Commerce Secretary aims to "cool down" negotiations with Canadian officials on Thursday. Mexico is currently not retaliating and will counter on April 2 when the reciprocal tariff plan takes effect. The UK seeks to reach a broader economic agreement with the US, but the Trade Secretary stated they will respond "without hesitation" for national interests.

What Does Tesla Think?

Tesla's "iron fan" Morgan Stanley: Long-term outlook for Tesla is positive, with the most optimistic expectation at $800. Wall Street has repeatedly lowered Tesla's target price, with JP Morgan stating that the stock price could drop another 50%! Under the plunge, even Elon Musk's "die-hard fans" are starting to exit. Will Tesla fall below $200 in the short term?

• Morgan Stanley believes that Tesla's benchmark target price is set at $430, with the forward P/E ratio for 2030 already dropping to 19 times. In a bearish scenario, the stock price could fall to $200.
• On Wednesday, Evercore ISI lowered Tesla's target price from $270 to $235. Analysts at the firm questioned whether Tesla's upcoming "affordable model" this year might just be a downgraded version of the Model Y, rather than a completely new product line; the latest version of Tesla's FSD autonomous driving technology has underperformed expectations, requiring frequent intervention from owners. JP Morgan bluntly stated that Tesla's Q1 delivery volume could be the worst quarter in nearly three years, with the stock price potentially dropping another 50%.
• Retail traders were originally the main force supporting Tesla's stock price, but some cracks have begun to show, with some retail investors stating, "At this point, I am starting to doubt my decision." Analysts believe that Tesla's stock is entirely driven by emotions, with short-selling pressure prevailing. There is still room for the stock price to decline in the next 30-60 days, making it easy to drop to $200 or even lower in the short term.

Media: TSMC suggests Nvidia, AMD, and Broadcom invest in a joint venture to operate Intel's foundries

TSMC is reported to be planning to team up with Nvidia and others to take over Intel's foundry, to which TSMC responded: no comment. Intel has not responded.

Goldman Sachs lowers US stock expectations, discusses "when it will bottom," and provides three strategies

Goldman Sachs has lowered its year-end target for the S&P 500 index from 6,500 points to 6,200 points. However, Goldman Sachs stated that if the economy and earnings continue to grow, history shows that pullbacks are usually good buying opportunities. It recommends that investors hold "non-sensitive" stocks, focus on undervalued stocks due to hedge fund position adjustments, and for investors concerned about recession risks, they should hold stable growth stocks.

Meta tests self-developed AI training chips, attempting to reduce reliance on Nvidia

Reports indicate that Meta is beginning to deploy and test its self-designed AI training chips on a small scale, which are specifically designed to handle AI workloads. Previously, Meta also had experience deploying custom AI chips, but those chips were only used for running models, not training them.

QBTS quantum computing surpasses traditional supercomputers, computation speed leads by millions of years, stock price surged by 19%

Quantum computing concept stock QBTS saw its price soar nearly 20% as its annealing quantum computer surpassed the world's strongest supercomputer in simulating magnetic materials. As a result, quantum concept stocks experienced a broad rally. The research findings have been published in the journal "Science," showing that D-Wave's quantum computer can complete magnetic material simulations in 20 minutes, while traditional supercomputers would take millions of years and consume enormous amounts of power