Preview of US Stock Market | The three major stock index futures showed mixed results, NVIDIA Corporation (NVDA.US) surged after earnings, and the Trump administration is considering new tariffs on semiconductors.

Pre-market Market Trends 1. As of August 27 (Thursday), U.S. stock futures for the three major stock indices were mixed. At the time of publication, Dow futures were down 0.03%, S&P 500 futures were up 0.42%, and Nasdaq futures were up 0.94%. 2. At the time of publication, Germany's DAX index was up 0.26%, the UKs FTSE 100 index was down 0.34%, France's CAC 40 index was down 0.91%, and the Euro Stoxx 50 index was down 0.10%. 3. At the time of publication, WTI crude oil was up 0.26%, priced at $82.44 per barrel. Brent crude oil was up 0.47%, priced at $87.35 per barrel. Market News Willing to Lose the AI Race? Trump Administration Considering New Tariffs on Semiconductors. According to informed sources, despite warnings from tech companies that this move could jeopardize the U.S.'s hope of maintaining a dominant position in artificial intelligence, the Trump administration is still considering a new wave of comprehensive tariffs on semiconductors. A proposed tariff scheme currently under consideration would significantly expand the scope of taxed tech products, potentially including not only chips but also many products that utilize chip manufacturing. U.S. Secretary of Commerce Gina Raimondo favors linking tariff exemptions for foreign companies to investments in U.S. chip manufacturing to stimulate domestic production. The government is also considering establishing a phased implementation plan for the new tariffs. They emphasized that this framework is still subject to significant modifications in the coming weeks or months. Trump Signs Executive Order Banning Certain Foreign Energy Equipment from Accessing the U.S. Power Grid. U.S. President Trump signed an emergency executive order citing national security, which prohibits certain foreign-manufactured transformers and other critical energy equipment from entering the U.S. power grid. The executive order bars the U.S. from procuring or installing specific foreign-produced power equipment that poses cybersecurity risks or operational risks. The order requires the U.S. Department of Energy to issue accompanying regulatory rules within 120 days and grants the Energy Secretary the authority to impose restrictions on equipment already in use to address relevant safety concerns. Kuwait and Qatar Join in "Shuttle Transportation," Oil Flow through the Strait of Hormuz Recovers to About Three-Quarters of Pre-war Levels. The oil-producing countries of Kuwait and Qatar are increasing crude oil transportation through the Strait of Hormuz, with total exports now recovering to about 70% of pre-Iran war levels, approximately 2 million barrels per day. Traders report that around 7 to 8 million barrels of oil are currently being transported daily through the Strait of Hormuz, up from about 4 million barrels in mid-July, reaching approximately three-quarters of pre-war levels. Data from Vortexa on Monday indicated close to 10 million barrels daily. Samsung Electro-Mechanics Initiates Price Increase for MLCCs, Consumer Products Up 25%-30%, High-end Products Up 10%-20%. According to the latest research from TrendForce, South Korea's Samsung Electro-Mechanics has recently taken the lead in raising prices for MLCCs for OEM and ODM customers for the fourth quarter of 2026. Specifically, Samsung Electro-Mechanics expects to raise prices on consumer-grade X5R products by an average of 25% to 30% to curb order placement and free up capacity for high-end production line expansion; on the other hand, high-end X6S products used in AI servers will vary between 10% to 20% based on customer negotiations. Major Japanese manufacturers Murata, Taiyo Yuden, and Kyocera are currently taking a wait-and-see approach, maintaining stable prices, and their potential follow-up on pricing adjustments will be a key factor in whether this round of price increases can continue. Semiconductor Boom Heightens Inflation Risks, South Korea's Central Bank Rarely Raises Rates Twice in a Row. The Bank of Korea raised its benchmark interest rate for the second consecutive time to counter inflation risks driven by the unprecedented boom in the semiconductor industry, which has led to economic growth exceeding expectations. On Thursday, South Korea's central bank voted 6 to 1 to increase the seven-day repo rate by 25 basis points to 3%, with the only dissenting member favoring maintaining the status quo. A previous survey of 22 economists showed that 14 predicted a 25 basis point increase, while 8 expected no change. The Bank of Korea raised interest rates by 25 basis points in July, marking the first increase since January 2023. Japan's Deputy Governor of the Bank of Japan: Agrees with Ueda's View on Accelerating Rate Hikes if Necessary. Bank of Japan Deputy Governor Masayoshi Amamiya stated that he would not comment on market expectations regarding the Bank of Japan's interest rate actions. The Bank of Japan will evaluate the likelihood of its baseline scenario materializing, as well as the associated risks, including the Middle East situation, demand for artificial intelligence, and exchange rate impacts when determining its future rate hike pace and timing. He believes that through appropriate policy measures, the Bank of Japan can stabilize overall inflation at the 2% level. Amamiya also expressed agreement with Ueda's viewpoint on accelerating rate hikes if necessary. No central bank would adjust the degree of monetary easing in a way that would surprise or disrupt the market. The weak GDP data is somewhat concerning, but it is likely influenced by technical factors, not enough to change their outlook on the economic prospect. On the Eve of IPO, Anthropic Splashing $45 Billion to Lock in Nscale Computing Power. Reports indicate that Anthropic will pay $45 billion (about 302.5 billion yuan) to British AI infrastructure provider Nscale over the next six years to rent cloud computing capacity at its data center campus in West Virginia, USA. The company has secured about 460 megawatts of power capacity and will heavily utilize NVIDIA Corporations latest Vera Rubin architecture chips. Individual Stock News NVIDIA Corporation's Last Quarter Revenue Surges to Double Expectations, Likely to Break $100 Billion This Quarter, Next Fiscal Year Growth Guidance of 70% Crushes Expectations. In the second fiscal quarter, NVIDIA Corporation's revenue saw its highest year-on-year growth in two years, with data center revenue increasing by 117%, gross margin remained stable at 75% from the previous quarter, and the company recorded nearly $7.8 billion in net gains from equity securities. The median revenue guidance for the third fiscal quarter reflects a slowdown in year-on-year growth to nearly 90%, excluding revenue from Chinese data center computing, failing to surpass the most optimistic expectations from analysts. The median gross margin guidance dipped to 74%, slightly below expectations. NVIDIA Corporation announced that Rubin is accelerating into full production, and Jensen Huang stated that AI has reached a turning pointthe current computing power translates directly to revenue. Following the earnings report, the stock price initially dipped but after the earnings call revealing a projected 70% revenue growth for next fiscal year and a commitment from Amazon.com, Inc. to significantly increase the adoption of NVIDIA Corporation products, the stock surged over 6% in pre-market trading. Kioxia Teams Up to Boost Japanese NAND Capacity with 5 Trillion Investment Over Six Years to Address AI Storage Gap. Japanese NAND flash maker Kioxia Holdings and its manufacturing partner SanDisk plan to invest over 5 trillion (approximately $31.4 billion) in Japan to significantly increase capacity and ease the supply constraints of critical storage components for AI data centers. Kioxia CEO Hiroo Ota stated on Thursday that this Tokyo-based flash giant plans to complete this scale of investment within the next six years, with 1.8 trillion allocated for a new plant in Kitakami. This facility will produce the latest generation of high-density 3D flash memory chips optimized for the massive workloads generated by AI services. Amazon.com, Inc. to Purchase 2 Million NVIDIA Corporation Chips for Data Center Expansion. Amazon.com, Inc. will deploy approximately 2 million high-end NVIDIA Corporation chips designed for training and running AI models in 2027 and 2028. Additionally, Amazon.com, Inc. previously stated in March that it would start installing 1 million NVIDIA Corporation chips at its Amazon Web Services (AWS) data centers starting this year. The latest transaction involves chips including NVIDIA Corporation's Blackwell Ultra, Rubin, and Rubin Ultra graphics cards. The unit price of these products is expected to be at least several tens of thousands of dollars, but major customers can enjoy discounts. NVIDIA Corporation Reportedly Plans to Acquire Hugging Face for Over $13 Billion. Reports suggest that NVIDIA Corporation is in talks to acquire the well-known AI platform Hugging Face, which focuses on the sharing and development of open-source models. Sources revealed that serious negotiations for a deal valued at over $13 billion have occurred between the two parties in recent weeks. Informed sources also disclosed that Microsoft Corporation had previously met with Hugging Face but has had no further contact with them since. According to previous reports, Hugging Face rejected NVIDIA Corporation's offer of $500 million late last year, which, if successful, would have valued Hugging Face at $7 billion. EU Calls Out Meta: Settlement in the U.S. Is Just the Beginning, European Standards Cannot Be Discounted. The European Commission spokesperson commented on Meta's recent settlement agreement of about $18 billion in the U.S., stating that they have communicated with the company on this matter and emphasized that subsequent actions are in Meta's hands. The spokesperson made it clear that the European side expects Meta to provide appropriate solutions that meet European standards regarding screen time management and parental control features, which means adjustments made in the U.S. may not meet EU regulatory requirements. Compared to the U.S. focus on specific functional restrictions for youth protection, the EU is more concerned with the overall compliance framework and the protection of user rights, and Meta may face stricter scrutiny in Europe than at home. U.S. E-commerce Company Coupang Becomes a New Point of Friction Between the U.S. and South Korea, U.S. Senators Urge Tariffs on Korea. Reports indicate that Republican Senator Bernie Moreno from Ohio has urged U.S. Trade Representative Katherine Tai to consider imposing tariffs on Korea due to its treatment of the U.S. e-commerce company Coupang. In a letter to Tai on Thursday, Moreno wrote, "Seoul is currently conducting a public hostile campaign against foreign companies." His letter outlined issues including "burdensome compliance requirements, excessive fines, criminal charges against corporate executives, and biased regulatory enforcement." Moreno requested that Tai consider initiating an investigation under Section 301 of the Trade Act of 1974. South Korea denies that it treats Coupang differently from domestic companies. CrowdStrike and Okta Earnings Reports Blow Expectations Away, Safeguarding AI Becomes a "New Printing Machine." On August 26, both CrowdStrike and Okta reported earnings that exceeded expectations. CrowdStrike's revenue increased by 26%, with net new ARR hitting a historic high, and AI detection business surged nearly threefold compared to the previous quarter. The company even defined this robust performance as a "Mythos moment," believing that the threat environment of cutting-edge AI significantly boosted demand for high-end cybersecurity tools, and the AI cybersecurity wave is accelerating. Okta's revenue grew by 11%, with RPO reaching $4.86 billion, and it raised its guidance for the second time this year, expecting an annual revenue target range of $3.216 billion to $3.226 billion. Salesforce, Inc. Q2 Performance and Guidance Exceed Expectations, CEO Refutes "SaaS Apocalypse" Theory. Salesforce, Inc. reported Q2 revenue of $11.3 billion, with adjusted earnings per share of $5.90, both surpassing expectations. The company raised its full-year revenue guidance and announced that its AI product Agentforce aims for an annualized revenue target of $1.5 billion while expanding cooperation with Anthropic. Moreover, the CEO refuted the theory of a "SaaS apocalypse," stating that AI is driving platform value growth. Earnings Guidance Raises Concerns, PC and Printer Demand Outlook Worries Investors. HP Inc. Q3 earnings exceeded expectations, but the stock plummeted afterward. HP Inc. reported Q3 revenue of $15.7 billion, with adjusted earnings per share of $0.83, both surpassing expectations, but the stock fell more than 9% in after-hours trading. The market is concerned about the "credibility" of its Q4 earnings guidanceafter excluding tariff refunds, it is actually below expectations. Meanwhile, PC shipments fell by 16%, and printer demand weakened, raising concerns that price increases may deplete future revenue, leading investors to question the sustainability of core profit margins. AI Wave Ignites Demand for Chip Design! Synopsys, Inc. Q3 Earnings Exceed Expectations and Full-Year Guidance Is Raised. Chip automation design (EDA) giant Synopsys, Inc. reported a 42% year-on-year revenue growth in Q3, reaching $2.48 billion, better than analysts' average expectation of $2.44 billion; adjusted net profit was $750 million, up 37% from $550 million in the same period last year; adjusted earnings per share were $3.91, also exceeding analysts' average expectation of $3.67. Growth Driven by Computer and Phone Demand, Best Buy Co., Inc. Raises Annual Outlook. Best Buy Co., Inc.'s Q2 performance exceeded expectations, and the company raised its full-year outlook. Data shows that the company's Q2 revenue reached $9.8 billion, with same-store sales growing by 4.1%, the strongest since 2022. The company attributed growth to demand for computers, phones, and TVs, with sales of new categories like AI glasses doubling; CEO Corie Barry stated that most categories experienced growth. Looking ahead, the company expects same-store sales to grow by 1.9% to 3%, compared to previous expectations of negative growth to 1%. Bilibili, Inc. Sponsored ADR Class Z Net Profit Surges 55% in Q2, Advertising Becomes Growth Engine, Gross Margin Improves for 16 Consecutive Quarters. In Q2, Bilibili, Inc. Sponsored ADR Class Z reported revenue of 7.94 billion yuan, an 8% year-on-year increase, with net profit increasing by 55% to 339 million yuan. Advertising revenue reached 3.13 billion yuan, a 28% year-on-year increase, becoming the primary growth driver; game revenue decreased by 14% due to high base effects. Gross margin improved for 16 consecutive quarters to 37.2%, and operating profit grew by 48%. Daily active users reached 116.5 million, with an average daily usage time of 113 minutes. Important Economic Data and Event Forecasts Beijing time 20:30: U.S. initial jobless claims for the week ending August 22, U.S. July wholesale inventory monthly rate preliminary value. Beijing time Thursday: The Jackson Hole Global Central Bank Symposium will be held from August 27 to 29. Earnings Forecasts Friday morning: Marvell (MRVL.US), Autodesk, Inc. (ADSK.US), Workday (WDAY.US), IREN (IREN.US), FinVolution Group Sponsored ADR Class A (FINV.US) Friday pre-market: MNSO (MNSO.US), Jiayin Technology (JFIN.US)