US market outlook: AI PC penetration rate to 65% by 2028 = Morgan S Dow average starts at $23 higher

Global service inflation is expected to be “tenacious” = Fitch
Fitch Ratings said in a report that deep-seated price increases in the service sector are preventing the global inflation rate from falling. Although the reversal of food prices and energy prices has contributed to a slowdown in the inflation rate, there is a high possibility that service inflation will continue to be “tenacious.”

The outlook for the global stock market in '24 is still good
Lombard Odier expressed the view that the outlook for the global stock market this year continues to be good, and there is room for growth in most major stock price indices. Investment Strategy Officer Luca Bindelli and senior stock strategist Edmond Ng have stated that the scenario of steady growth in the global economy and a decline in the inflation rate has not changed despite immediate uncertainty, and it should continue to be an important tailwind for the stock market in 2024.

[Financial Summary] NVIDIA's stock price is now 1000 dollars! High growth continues with Blackwell, the strongest chip in the world, and dividends are also good materials
$NVIDIA(NVDA.US)$ The financial results announcement was announced on 5/22. Due to overtime trading that followed, NVIDIA's stock price rose 6.1%, reaching the $1,000 mark for the first time.

The Fed's inflation debate shifts to a decline in commodity prices
● US Federal Reserve (Fed) officials are discussing commodity price trends in measures against inflation, and while Chairman Powell suggests the possibility of a further decline, there are also skeptical views.
● In particular, the pace of price reduction for used cars and clothing is a major factor in which the inflation rate in the latter half of 2023 declined at a faster rate than expected, and if the decline continues in the future, there is a possibility that it will affect future inflation rates.
● On Wall Street, there is optimism that core commodity prices may continue to fall due to strengthened supply chains, but there are cautious views among Fed officials about the possibility of upside risks, such as geopolitical events and other factors that may increase supply bottlenecks and transportation costs.
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ECB probably cuts interest rates to 25 bp in June = Deputy Governor
European Central Bank (ECB) Vice President Luis de Guindos said that if the ECB decides to cut interest rates in June, there is a high possibility that they will cut 25 basis points (bp). The ECB suggests that if economic indicators are as expected, there is a high possibility that key interest rates will be lowered next month.

The penetration rate of AI PCs will reach 65% by 2028, and Lenovo and Dell-Morgan Stanley will benefit the most
● $Morgan Stanley(MS.US)$ According to the research report, the AI PC market penetration rate rapidly grew from 2% in 2023 to 65% in 2028, becoming an important factor driving the growth of the PC market, and among them, the commercial PC market became the first introduction scenario for AI PCs. $Microsoft(MSFT.US)$ It is predicted that “CoPilot+PC” will be the first “killer application” for AI PCs.
●According to the same report, $LENOVO GROUP LTD(LNVGY.US)$ with $Dell Technologies(DELL.US)$ It is predicted that it will be the biggest beneficiary of the global AI PC trend. Lenovo has the highest sales share of notebook PCs in the price range of 1,000 dollars or more, and since Dell has a data advantage as a full-stack technology provider, it is expected that both companies will achieve a significant increase in sales over the next few years.

Tesla's first energy storage superfactory outside the US has landed in Shanghai
● $Tesla(TSLA.US)$Construction of the first energy storage superfactory outside the United States has begun in Shanghai's Lingang New Area, and it is expected that 10,000 ultra-large commercial energy storage batteries “megapacks” will be produced for the global market in the first quarter of 2025.
● Mr. Tom Zhu, the current senior vice president in charge of Tesla's automobile business and president of the Greater China region, revealed that Tesla's Shanghai Energy Storage Super Factory is expected to be put into operation in the first quarter of 2025, the production volume of super-large storage battery megapacks will rise to 10,000 units, and the storage scale after test operation will be close to 40 gigawatt-hours (1 gigawatt-hour = 1,000 megawatt-hours).

— MooMoo News Zeber
Source: Dow Jones, Moomoo, Bloomberg
This article uses automatic translation for some of its parts