Ou Yang Hong Zhi: Nvidia Tops Global Market Cap, AI Chips to Reshape Equity Market Landscape

Global technology stocks have continued to climb recently, especially semiconductor companies benefiting from the AI trend. Nvidia surged 2.8% to a new all-time high, with its market capitalization rising to $3.45 trillion—officially surpassing Microsoft to become the most valuable publicly traded company in the world. Ou Yang Hong Zhi points out that this breakthrough not only reflects the disruptive impact of AI on capital market structures, but also underscores strong investor confidence in the future growth prospects of AI computing infrastructure.

AI Chips Drive New Highs for Tech Stocks, Semiconductor Industry Accelerates Revaluation

Chipmakers such as Broadcom, Micron, AMD, and Qualcomm all rallied in tandem, with the Philadelphia Semiconductor Index rising 2.7% overall. Broadcom also announced its latest Tomahawk 6 switch chip, which has already begun shipping, highlighting the urgent strategies of companies to capture the AI data center market. Ou Yang Hong Zhi analyzes that the current AI hardware market is at the early stage of a new upward cycle. Driven by both capital and technology, the valuations by chip manufacturers are shifting from cyclical to growth-oriented. In the short term, the AI industry chain will be the main market theme, especially for companies with vertical integration capabilities and strong front-end R&D, which exhibit robust earnings elasticity.

However, Ou Yang Hong Zhi also notes that some tech stocks are already trading at high valuations. If future revenue growth or cost structures fail to improve sustainably, a correction risk may emerge. Therefore, when investing in technology assets, it is crucial to focus on targets with sustainable business models and controllable capital expenditures, and to adopt a phased entry strategy based on technical trends.

Trade Policy Volatility Heightens Market Divergence, Defensive Mindset Needed

The White House has recently sent frequent signals regarding tariffs and has brought forward the deadline for multilateral trade negotiations to this week, drawing broad market attention to the direction of policy adjustments. The Trump administration is pressuring multiple countries to submit negotiation proposals quickly and is considering raising steel tariffs to as much as 50%, sparking strong reactions from the EU. In its latest report, the OECD pointed out that tariffs and policy uncertainty are key factors in lowering global economic growth forecasts. Ou Yang Hong Zhi believes that tariff policy uncertainty has begun to transmit to the real economy.

In April, US factory orders fell 3.7% month-on-month, indicating that preemptive purchasing ahead of expected tariff hikes has been exhausted and that corporate caution toward future investment is intensifying. The US Department of Labor reported an increase in layoffs, reflecting rising pressure in the labor market and indirectly confirming the substantial impact of trade frictions on economic fundamentals. From an asset allocation perspective, Ou Yang Hong Zhi suggests moderately increasing the proportion of defensive assets under the current macro environment, such as large-cap consumer stocks, utilities, and certain stable dividend-paying tech stocks. In a phase of slowing global economic growth and heightened policy volatility, over-allocating to highly volatile growth assets may amplify portfolio risk, so more attention should be paid to risk-adjusted returns.

Weaker Macroeconomic Outlook, Signals of Market Style Rotation Strengthen

The OECD has downgraded its 2025 US economic growth forecast to 1.6%, a clear decline from the previous 2.2% projection. Ou Yang Hong Zhi analyzes that while the current stock market is buoyed by AI and technology, macroeconomic fundamentals are signaling a moderate slowdown. Marginal weakening in the labor market and softening manufacturing orders are heightening concerns about the sustainability of corporate earnings. Meanwhile, Meta and Constellation Energy have signed a 20-year nuclear power purchase agreement, and Dollar General has raised its full-year sales outlook, both reflecting companies searching for stable growth amid changes in energy costs and consumption structure. Ou Yang Hong Zhi points out that investors should monitor for signs of continued labor market weakness in the coming months to determine whether the market is entering a style rotation cycle. On this basis, balanced allocation is currently a relatively prudent strategy. Maintaining exposure to high-quality tech assets while appropriately deploying into low-volatility, stable cash flow sectors can effectively hedge against asset drawdown pressure from rising macro risks.

Tech and chip sectors are performing strongly, but changes in the macro environment and trade uncertainties are increasing systemic market risk. Ou Yang Hong Zhi stresses that in the coming months, close attention should be paid to the progress and outcomes of US negotiations with major trading partners, to assess whether they will trigger cost revaluation or supply chain restructuring pressures. In terms of investment strategy, portfolio risk resistance should be strengthened, with flexible responses to policy disruptions and market style shifts. Ou Yang Hong Zhi recommends looking for global diversification opportunities, especially in AI industry chains, clean energy, and low-volatility consumer sectors, to seek stable growth paths amidst heightened volatility.