AI Daily丨”British Warren Buffett” bears on Nvidia: AI hype risks need to be cautious; Tesla’s total market capitalization exceeds TSMC

In this era of rapid change, AI technology is evolving at an unprecedented rate, bringing a wide range of opportunities. AI Daily is committed to mining and analyzing the latest AI concept stock companies and market trends, providing you with in-depth industry insights and value analysis.

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1.U.S. stocks rose across the board on Monday as the effects of Trump’s victory continued, as investors awaited key economic data and corporate earnings later in the week.

At the close, the Dow rose 304.14 points, or 0.69%, to 44,293.13, the Nasdaq rose 0.06% to 19,298.76, and the S&P 500 rose 0.10% to 6,001.35. The small-cap Russell 2000 rose 1.5% to its highest level since November, with small and medium-sized businesses expected to be the main beneficiaries of President-elect Trump’s proposed tax cuts and looser regulatory environment.

In terms of individual stocks, Tesla rose 9.0%, surpassing TSMC in market capitalization to rank seventh in U.S. stocks. Wedbush Securities said in a note to clients that the electric vehicle maker’s AI business development could receive more support from Trump.

2.At the Baidu World Conference on November 12, Baidu CEO Robin Li revealed that the current average daily call volume of Baidu’s Wenxin model exceeds 1.5 billion, an increase of 7.5 times in half a year. He pointed out that after the basic model capabilities are ready, it will usher in the star shining moment of AI applications. There are two application directions for AI applications, agents and industrial applications, and intelligence will be the most mainstream form of AI applications, which is about to usher in its flashpoint.

In Robin Li’s view, the current agent is like a website in the PC era, or a self-media account in the mobile era, the difference is that the agent is more intelligent, and may become a new carrier of content information and services in the AI native era. He analyzed that this is mainly because the threshold for agents is low enough for anyone to get started, and on the other hand, the ceiling is high enough to make very powerful applications.

3.Japanese Prime Minister Shigeru Ishiba unveiled a $65 billion plan to boost the country’s chip and artificial intelligence (AI) industries through subsidies and other financial incentives.

Shigeru said the government would not issue deficit bonds to fund plans to support the chip industry. According to the draft, the government expects the economic impact of these measures to reach about 160 trillion yen.

4.Nvidia shares have nearly tripled this year, and Wall Street analysts are extremely bullish on the chipmaker. But Terry Smith disagreed.

The fund manager, who has been dubbed the British buffett by the British press, is skeptical. He said the world’s largest stock lacks a predictable profit stream and an excellent track record of high returns on capital. Smith is shunning the stock, although he acknowledges that it would weaken the performance of his portfolio.

5.On Monday morning, November 11, Eastern time, Edgewater Research, an investment company, sent a notice to investors that Monolithic Power (referred to as MPWR, Xinyuan Systems) may have problems with the voltage regulation module/power management chip produced for Nvidia’s Blackwell chips, which may cause the company to be unable to supply Nvidia’s Blackwell graphics cards, and the supply share will be cut or even completely lost.

They believe that Renesas could take over the B200 project and Infineon could take over the GB200 project, as both companies have been receiving orders urgently in recent weeks. Edgewater Research also said it had heard that Nvidia had canceled all unconfirmed orders for the core source system.

The news caused the share price of Xinyuan Systems to fall nearly 25% in intraday trading on Monday, the largest intraday decline since 2005.

Institutions look at AI

1.Guotai Junan Research Report pointed out that the Robotaxi industry has ushered in a key technological breakthrough. At the end of the 20th century and the beginning of the 21st century, the concept of the Robotaxi industry emerged; In the 2010s, the Robotaxi industry ushered in a key technological breakthrough; In the 2020s, the Robotaxi industry gradually matured. There are many challenges in the future commercialization process.

Robotaxi faces many challenges in the commercialization process, including technical challenges, cost challenges, and regulatory and policy challenges. These challenges are not only the bottleneck of the industry’s development, but also the driving force of technological progress and business model innovation. 1) The Robotaxi industry chain has completed self-production and self-development. Upstream: Autonomy of core technologies. It mainly involves two categories: perception systems and algorithms and software. The perceptron is the eye of the Robotaxi, the intelligent driving chip is the brain of the Robotaxi, and the algorithm is the nerve of the Robotaxi. 2) Robotaxi will continue to advance in technology and business model in the future. Technological advancements: The evolution of autonomous driving technology will provide the application of new models (self-organizing neural networks; GOD model) business model: In the future, the charging model and profit strategy will be further adjusted according to market demand, focusing on market expansion and regional coverage of possible market participants in the future: Huawei, Xpeng, Celis and other OEMs, as well as Tesla’s Cybercab plan. New entrants have more flexible strategic layouts and advantages.

The Big Seven Daily

[Monolithic Power Systems shares plummet as Blackwell’s distribution was ‘at risk’]

Monolithic Power Systems (NASDAQ:MPWR) plunged 14% in premarket trading on Monday as investment firm Edgewater Research said the company’s (NASDAQ:MPWR) configuration of Nvidia’s (NASDAQ:MPDA) Blackwell series GPUs was “at risk.”  

“It appears that performance issues with MPWR (voltage regulator module/power management IC) could severely limit or eliminate MPWR’s quota at Blackwell, with Renesas receiving a £200 quota and Infineon receiving a £200 quota as both companies have received urgent orders in recent weeks,” the company’s analysts wrote in a note to customers. The Japanese company Renesas and the German company Infineon (OTCQX: IFNNF) (OTCQX: IFNNY) are mentioned.  

The analyst added that the root cause of the Monolithic power management IC issue is “not yet known”, but feedback suggests that it may be related to a product failure that was identified earlier this year at the Blackwell SKU that consumed more than 700 watts. For analysts, this means that Monolithic’s B200 (1,000 watts) and GB200 (1,200 watts) SKUs are “limited or none” in stock, and the company will likely only ship for the B300A (700 watts).  

“We’ve heard that NVDA will be transferring confirmed orders to MPWR in the coming quarters, but we’ve heard that NVDA has eliminated half of MPWR’s backlog and cut all unconfirmed orders,” the analyst explained. “It seems that Renesas’ Hopper allocation could grow to 50% in the first or second quarter of 2025, compared to about 15% in the fourth quarter of 2024. We are not aware of IFX’s plans to qualify for Hopper. It sounds like NVDA Engineering has lost faith in MPWR, and they have decided to make Renesas and IFX their two main suppliers. ”

Analysts also noted that Monolithic’s solution to the hopper problem was seen as a “stopgap measure” by multiple supply chain partners rather than a true solution to the underlying problem.

“We believe this will pose significant downside risks to MPWR’s enterprise data division in 2025 and will also pose significant risk to the share price as investors are more focused on MPWR’s AI performance, which currently masks the company’s strong performance in other sectors,” the analysts added. ”

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