The Federal Reserve decided to keep interest rates unchanged this morning (1) and hinted that it may start cutting interest rates in September if inflation continues to fall. Benefiting from Ball's dovish remarks, Huida earlier announced that it would provide a complete set of services, models and computing platforms to the world's leading robot manufacturers, AI model developers and software manufacturers, and Morgan Stanley ranked it as the first For stock selection, I am optimistic that the target price will reach $144.
Incentive Huida surged 12.8% on Wednesday and rebounded to US$117.02 (it rose another 3.67% after the bell). The market value increased by US$329 billion in one breath, setting a record for the largest single-day growth, and the increase this year expanded to 136.3%. Founder Jen-Hsun Huang's net worth also soared by nearly $12 billion on Wednesday, setting a record for a single-day increase in his personal wealth according to the Bloomberg Billionaires Index.
Semiconductor stocks surge across the board
Led by Huida, semiconductor stocks rose across the board. Micron Technology rose 7.1%, AMD, which just released its financial report, rose 4.4%, TSMC ADR also rose 7.3%, and the Philadelphia Semiconductor Index hit a record high of 10.21% since November 10, 2022. It was the strongest single-day performance in the past 21 months, with the S&P 500 Index and the Nasdaq Index both recording their largest single-day gains since February 22.
The final performance of the four major U.S. stock indexes on Wednesday was as follows:
- The Dow Jones Industrial Average rose 99.46 points, or 0.24%, to close at 40,842.79 points.
- The S&P 500 index rose 85.86 points or 1.58% to close at 5522.30 points.
- The Nasdaq Composite Index rose 451.98 points, or 2.64%, to close at 17599.40 points.
- The Philadelphia Semiconductor Index rose 343.03 points or 7.01% to close at 5233.18 points.
Technology sector rotation
Huida's stock price has been volatile recently. One reason is that high-priced technology stocks have flowed to companies that are expected to benefit from the Federal Reserve's interest rate cuts and have previously underperformed in stock prices. The other reason is that Alphabet's AI spending has made investors worried that AI may take longer. Time will take to see profits after money rotation accelerated a week ago.
Matt Maley, chief market strategist at Miller Tabak + , said that Huida's fluctuations show how confused investors are now. They are worried that the huge capital investment in AI will not be able to create the investment returns that people have expected in the past year.
However, after AMD announced its optimistic financial forecast for AI chips yesterday, the above concerns may have been alleviated. Coupled with Huida's announcement of entering the robot market, funds have rushed back into technology stocks.
Pelosi buy the dips
It is worth noting that Benzinga reported that Nancy Pelosi, the U.S. Democratic congresswoman and former Speaker of the House of Representatives, known as the "Congress Female Stock God", accurately buy the dips when Huida fell deeply before, and after Microsoft released a stock that was not as good as the market expected. Reduce holdings before earnings report.
Filing materials show that Pelosi bought 10,000 shares of Huida stock on July 26, with a transaction amount of between US$1 million and US$5 million. She also sold 5,000 shares of Microsoft stock on the same day. Microsoft on July 30 It fell after reporting earnings that were worse than expected.
Pelosi is known for making huge profits from Huida in the past. She just bought 10,000 shares of Huida stock between June 24 and July 1, and bought 20 shares that will be on June 20, 2025. Broadcom's expiring call option has an exercise price of $800, and it also reduced its holdings of 2,500 shares of Tesla stock.
