Boosted by the strong performance of the US stock market overnight, related ETFs rose in the early trading session. On February 23, 2024, the NASDAQ 100 ETF (159659) opened with a jump of over 1%, and the highest intraday price was 1.387 yuan, setting a new high since its listing. Funds were actively subscribed to during the trading session. In the past five trading days, except for the suspension of subscription due to the US stock market closure on February 19th, the NASDAQ 100 ETF (159659) has continuously received net inflows of funds, with a total net inflow of 47.57 million yuan over the past five days.
Since the beginning of this year, the NASDAQ 100ETF (159659) has received funding and continued to actively expand its presence. As of the latest, the NASDAQ 100ETF (159659) has 415 million shares and a new scale of 556 million yuan, continuing to break new records since its listing; The cumulative share growth of NASDAQ 100 ETF (159659) during the year was about 318 million, with a range share increase of nearly 328%, ranking first among all ETFs tracking the NASDAQ 100 index.
Source: Wind, 2024.1.2-2024.2.23
NVIDIA surged over 16%, with major technology stocks collectively rising
On the news front, after releasing strong financial reports, Nvidia's stock price surged 16.40% on Thursday, with a daily surge of $277 billion in market value to $1.96 trillion, continuing to reach a historic high; Chip stocks collectively surged, with Chaowei Semiconductor up 10.69%, Maywell Technology and Broadcom up 6.64% and 6.31% respectively, and Asma up 4.81%; In terms of other large technology stocks, Meta rose 3.87%, Amazon rose 3.55%, Microsoft rose 2.35%, and Apple, Google A, Google C, and Tesla rose over 1%.
Recently, Nvidia released its 2024 fiscal year and fourth quarter performance reports. In the fiscal year 2024, the company's revenue was 60.922 billion US dollars, a year-on-year increase of 126%; The net profit was $29.76 billion, a year-on-year increase of 581%. The company achieved a revenue of 22.103 billion US dollars in the fourth quarter of fiscal year 2024, a month on month increase of 21.98% and a year-on-year increase of 265.28%; The net profit was 12.285 billion US dollars, a month on month increase of 32.91% and a year-on-year increase of 768.81%. The company expects a revenue of $24 billion in the first quarter of fiscal year 2025, with a fluctuation of 2%, a month on month increase of about 7%, and a year-on-year increase of about 234%.
Market insiders point out that the data center department is largely responsible for helping the company achieve a surge in performance. Its data center revenue in the fourth quarter was $18.4 billion, more than five times that of the same period last year, higher than analyst expectations of $17.2 billion, accounting for 83% of Nvidia's total revenue.
[Wall Street analyst: AI spending will increase by $1 trillion over the next 10 years]
Goldman Sachs stated that Nvidia has overcome seemingly high barriers, and data centers have once again become a key driver of growth. Looking into the future, although the revenue of the data center in fiscal year 2024 has more than tripled year-on-year, in our simulation, the company will still grow more than twice in 2025, because we expect that the expenditure on the second-generation AI infrastructure of large communication service providers and consumer Internet companies will not only continue to grow, but also increase the development and adoption of AI by enterprise customers representing various vertical industries and more and more countries.
Wedbush analysts pointed out that Nvidia's quarterly performance and guidance are seen as a "moment to change the rules of the game" and reiterated that the artificial intelligence revolution is just beginning. The analyst stated that for technology transformation stories like Nvidia and the artificial intelligence revolution, investors must see the forest through the trees and see the direction of this spending wave in the next three years. 60% -70% of enterprises will eventually embark on the path of artificial intelligence use cases, and we estimate that AI spending will increase by $1 trillion over the next 10 years.
"At present, we are only discussing generative artificial intelligence in enterprises, and consumer AI applications led by companies such as Alphabet, Meta, Amazon, and Microsoft are about to arrive."
[Latest updates on large technology stocks]
Google: Google spends millions of dollars to bribe "American Tieba" Reddit to open data to help train AI models. Reddit claims to have reached an agreement with Google worth approximately $60 million, which will allow Google to use posts posted on Reddit to train artificial intelligence models and improve services such as Google Search. At the same time, Reddit can also access Google's artificial intelligence model to improve its internal website search and other features.
Apple: According to media reports, Apple's first folding device may be an iPad or Mac, rather than an iPhone. The latest supply chain report shows that Apple has not given up on developing foldable devices, but is working hard to develop iPads or MacBooks with foldable screens by 2025 or later. It is currently unclear at what stage the design is in, but the message shows that it is nearing completion and mass production plans for the equipment are underway.
Amazon: Doug Herrington, the head of Amazon's retail department, stated at an internal staff meeting last week that he believes the current Al craze is more important than any major technological change in the past. Herrington emphasized that in the past, many large and successful companies faced significant technological changes and ended up disappearing due to their inability to adapt. If Amazon wants to maintain success, it must lead the change. Currently, Amazon is testing a new feature driven by generative AI aimed at improving the website shopping experience by helping customers obtain answers to common product questions.
Billion dollar institutions are aggressively increasing their holdings in technology giants
The Canada Pension Plan Investment Board (CPPIB), the largest managed pension investment institution in Canada, submitted a 13F document to the US SEC, disclosing its US stock holdings data for the fourth quarter of 2023 and buying heavily into technology stocks such as Microsoft, Apple, and Broadcom.
Specifically, according to the 13F document, as of the end of 2023, CPPIB held a total of 1085 securities with a market value of approximately $79.2 billion, an increase of approximately $10.8 billion (+15.78%) compared to the previous quarter; In the fourth quarter, CPPIB mainly bought technology stocks such as Microsoft, Apple, Broadcom, and Amazon. It increased its holdings in Microsoft by $481 million (+64%), Apple by $458 million (129.21%), Broadcom by $287 million (+254.27%), and T-MobileUS by $192 million (51.04%). Sell traditional industry companies such as TCEnergy, Ensta, ExxonMobil, Mocha, and Enbridge.
In addition, multi billion dollar institutions such as FMR, Northern Trust, JPMorgan Chase, Wells Fargo, and Franklin Resources hold 13F positions, with Microsoft, Apple, Nvidia, Alphabet, and other stocks as key positions.
According to the 13F position report disclosed by Fidelity Management and Research (FMR) in the fourth quarter of last year, the total market value of the institution's stock holdings at the end of the fourth quarter was 1182.578 billion US dollars. The top five heavyweight stocks ranked by market value ratio are Microsoft (6.96%), Apple (4.88%), Nvidia (4.37%), Amazon (4.06%), and Google A-shares (2.68%).
According to the 13F holdings report disclosed by Franklin Resources in the fourth quarter of last year, the total market value of the institution's stock holdings at the end of the fourth quarter was $2010.67 billion, an increase of 6.00% quarter on quarter. The top 5 heavyweight stocks ranked by market value ratio are Microsoft (4.74%), Amazon (2.5%), Apple (2.09%), Nvidia (1.96%), and Google A-shares (1.61%).
Zhang Yidong, the global chief strategic analyst of Industrial Securities, said recently that this round of AI technology wave led by the United States may drive a new Jugra cycle in the United States and even the world, similar to the Internet wave launched in the United States in the 1990s. The US technology market will bring investment opportunities in technology-based industries to the global capital market.
"Global Technology Leader Wind Vane" - NASDAQ 100ETF (159659)
As one of the representative market indexes in the US market, the NASDAQ index is also called the "US tech index". The NASDAQ 100 index is based on the NASDAQ index and refined with essence. It selects 100 non-financial companies as constituent stocks, and calculates the index according to the corresponding index compilation rules on the basis of market capitalization weighting, reflecting the overall market of NASDAQ or the trend of US high-tech.
Since the beginning of 2014 until February 16, 2024, the Nasdaq 100 index has accumulated a growth of 392%, significantly outperforming major US stock indices such as the Nasdaq Composite Index and the S&P 500. At the same time, it has significantly outperformed other major global market core indices such as the FTSE 100 in the UK, DAX in Germany, and CAC40 in France.
Source: Wind, statistical interval from January 1, 2014 to April 16, 2022. The Nasdaq 100 Index was released on February 1, 1985, and its past performance does not represent future performance.
Risk warning: Funds carry risks and investment should be cautious. The above viewpoints, views, and ideas are based on the current situation and may change in the future. We do not make any substantial guarantees or commitments regarding the authenticity, completeness, and accuracy of the opinions or information cited from external institutions such as securities companies. The NASDAQ 100ETF can invest in overseas markets. In addition to bearing general investment risks such as market volatility risks similar to domestic securities investment funds, this fund also faces unique risks such as exchange rate risks arising from investing in overseas markets. The past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Investors should carefully read fund legal documents such as the Fund Contract, Prospectus, and Product Information Summary, fully understand the risk return characteristics of fund products, and based on understanding the product situation and listening to the appropriate opinions of sales institutions, make independent decisions on fund investment according to their own risk tolerance, investment period, and investment goals, and choose suitable fund products.
The performance of the Nasdaq 100 index in the past five years has been 37.96% (2019), 47.58% (2020), 26.63% (2021), -32.97% (2022), and 53.81% (2023), respectively. The NASDAQ 100 Index is compiled and published by NASDAQ Stock Market Corporation. The index compilation party will take all necessary measures to ensure the accuracy of the index, but does not make any guarantees, nor is it responsible to anyone for any errors in the index. The past performance of the index does not represent its future performance, nor does it constitute a guarantee of fund investment returns or any investment advice.