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Is AI overheating? Rothschild reduced its holdings in the US stock AI leader NVIDIA, the Nasdaq rose still, and the Nasdaq 100 ETF (159660) hit a new high for three consecutive times!

author:There are clouds

The three major indexes of U.S. stocks rose sharply overnight, with the Dow Jones up more than 2%, the S&P 500 up 1.45%, and the Nasdaq 100 up 0.73%. When the global artificial intelligence boom is surging, asset management institution Edmond de Rothschild Asset Management is reducing its position in the US stock AI leader NVIDIA, taking the opportunity to cash out when the stock price skyrocketed, NVIDIA's total market value recently exceeded trillion US dollars, becoming the overlord of US chip stocks, as of last Friday, its annual gain was as high as 169%. The Geneva, Switzerland-based asset manager is owned by the Rothschild family, a veteran European financial family with more than 200 years of history, and currently manages assets of 79 billion Swiss francs ($87.1 billion). However, despite the bearish impact of established financial institutions reducing their holdings to cash out, Nvidia's decline on Friday was also limited, only 1.11%.

Among other NASDAQ component stocks, Lululemon rose by more than 11%, ZSCALER and Airbnb rose by more than 5%, Paccar and ILLUMINA rose by more than 4%, among technology giants, Tesla rose by more than 3%, Booking, Broadcom, JD.com, EBAY, Adobe and other gainers, and the Nasdaq 100 index continued to rise, continuing to hit a new high since April 2022.

In terms of popular ETFs, the Nasdaq 100 ETF (159660), which focuses on low fees, rose 0.44%, a strong third consecutive Yang, continuing to hit a new high since listing! The NASDAQ 100 ETF (159660) has a management fee of 0.5%/year and a custody fee of 0.15%/year, the lowest in the market!

Is AI overheating? Rothschild reduced its holdings in the US stock AI leader NVIDIA, the Nasdaq rose still, and the Nasdaq 100 ETF (159660) hit a new high for three consecutive times!

Data source: Xueqiu, statistics as of 11:22 am on June 5, 2023

It is worth noting that the US stock NASDAQ market has performed well this year. As of June 2, the NASDAQ index rose more than 26% during the year, and the NASDAQ 100 index rose nearly 33%, leading the world's major indexes!

CICC said that driven by new trends in industries such as artificial intelligence and stimulated by cost reduction and efficiency increase, leading technology companies in the United States have stronger risk resilience. According to the Q1 performance reports released by US companies, most technology companies' earnings per share and corporate revenue exceeded market expectations, showing the resilience of the company's fundamentals and positively boosting market confidence.

Shenwan Hongyuan pointed out that 78% of S&P 500 companies exceeded expectations in the 2023Q1 earnings season, of which NVIDIA's performance significantly exceeded expectations. According to Factset, 97% of companies in the S&P 500 have already released their 2023 Q1 earnings reports. 78% of those companies reported higher-than-expected actual earnings per share, above the 5-year average of 77% and the 10-year average of 73%. Overall, the company reported corporate earnings that were 6.5 percent higher than expected and higher than the 10-year average of 6.4 percent. In terms of industries, the proportion of profits in the financial industry is lower than expected, and the proportion of information technology and industry exceeding expectations is higher!

Goldman Sachs pointed out that AI will drive the global economy by about $7 trillion over the next 10 years, and estimated that the total market size of AIGC software will reach $150 billion. Of all the tech stocks, Microsoft, Google, Amazon and Meta are the most likely to benefit, with these tech giants all in the top 10 weights of the Nasdaq 100.

Goldman Sachs calculates that the total net profit margin of large U.S. technology stocks averaged 20.2% in the past, while the profit margin of all S&P 500 companies was 10.9%, a difference of 9.3 percentage points. High margins mean stronger cash flow, helping the company invest further in long-term growth, while also returning cash to shareholders.

NASDAQ 100 ETF (159660) tracks the NASDAQ 100 index, under the wave of artificial intelligence, the world's AI field layout and accumulation of the most leading, deepest technology giants are still concentrated in NASDAQ, such as Microsoft, Google, NVIDIA, Meta, etc., these AI giants are all the top ten weighted stocks of the NASDAQ 100 index. The NASDAQ 100 ETF (159660) has a management fee of 0.5%/year and a custody fee of 0.15%/year, which is significantly lower than the mainstream fee structure in the market.

Is AI overheating? Rothschild reduced its holdings in the US stock AI leader NVIDIA, the Nasdaq rose still, and the Nasdaq 100 ETF (159660) hit a new high for three consecutive times!

(Risk warning: The above index constituent stocks are only for display and do not represent any form of individual stock recommendation!) )

[Starting from NASDAQ, better than NASDAQ!] 】

According to public information, the NASDAQ index contains 100 non-financial companies listed on the NASDAQ, and the NASDAQ market has successfully hatched a large number of technology giants since its birth, and is widely regarded as cultivating innovative,

One of the most successful investment markets for technology-based and growth companies. As the flagship index of the Nasdaq market, the Nasdaq 100 Index has significantly outperformed the Nasdaq Index in its long-term gains. Since 1991, the Nasdaq 100 has returned 13.96% annualized for more than 30 years, significantly higher than the Nasdaq's 11.48%. (Source: Wind, as of May 26, 2023)

Is AI overheating? Rothschild reduced its holdings in the US stock AI leader NVIDIA, the Nasdaq rose still, and the Nasdaq 100 ETF (159660) hit a new high for three consecutive times!

Data source: Wind, statistical interval 1991.1.1-2023.5.26

Risk warning: The fund is risky and investment needs to be cautious. This material is for promotional purposes only and is not intended as any legal document. The past performance of the fund is not indicative of future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund. The fund manager manages and uses the fund property in accordance with the principles of due diligence, good faith, prudence and diligence, but does not guarantee that the investment in the fund will be profitable, nor does it guarantee the minimum return. Investors should carefully read legal documents such as the Fund Contract, Prospectus and Product Information Summary to learn more about the product information. The NASDAQ 100 ETF is a medium risk rating (R3) product and is suitable for investors with a balanced (C3) or above result after customer risk rating assessment. The underlying index is not fully representative of the entire stock market. The average return of the constituent stocks of the underlying index may deviate from the average return of the overall stock market. Investors are requested to pay attention to the risks of indexed investment and the holding risks of concentrated investment in the constituent stocks of the NASDAQ 100 Index, please pay attention to the risks of large equity weight and high concentration of some index constituents, the risks of indexed investment, the operational risks of ETFs, the unique risks of investing in specific varieties, and the risks of participating in the lending business of securities under the Facility Connect.

The content and data are for reference only and do not constitute investment advice. AI technology strategy is provided for the cloud.