*Jpmorgan Chase Recently Evaluated Pursuing Its Own Stablecoin, Sources SAY: BBG
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JPMorgan Chase and HSBC: Market pullbacks provide a window for investment, not a trend reversal.
According to BlockBeats, on July 6th, as we enter the second half of the year, several Wall Street institutions believe that the recent market correction is more of a repositioning opportunity than a trend reversal. Both JPMorgan Chase and HSBC Holdings believe that short-term volatility in global stock markets will not change the overall upward outlook, but the two institutions differ in their specific allocation strategies. Mislav Matejka, Head of Global and European Equity Strategy at JPMorgan Chase, and his team stated that they have maintained a "buy on dips" view since the outbreak of the Iranian conflict. The bank believes that the global economy remains resilient, the situation in the Middle East has not significantly damaged economic growth, and central banks have not shifted to more aggressive tightening policies. Strategists expect that global and emerging market stock markets are likely to reach new highs in the future, and believe that the attractiveness of international markets is increasing. They also believe that the South Korean market, after its recent correction, is worth buying on dips. In terms of sectors, JPMorgan Chase believes that the Philadelphia Semiconductor Index has presented another buying opportunity after the recent correction, but remains relatively cautious about large-cap US technology stocks. The bank advises caution regarding AI-driven sectors, including software, business services, and media. Conversely, the basic resources sector has regained its investment value after recent adjustments, and gold is becoming more attractive. Strategists also point out that overall investor positioning remains cautious, with the market holding substantial cash reserves. If a summer correction occurs, funds are expected to flow back into the stock market. Max Kettner, Head of Multi-Asset Strategy at HSBC Holdings, is more focused on the recovery opportunities in leading AI companies. He stated that the market is entering its summer rally in July and August, and AI hyperscale cloud service providers have already experienced a cumulative correction of approximately 20%, which is considered excessive. Kettner believes that current market expectations for these companies' earnings have been significantly lowered, and these companies still maintain strong profitability. If they can prove that their massive AI capital expenditures are gradually translating into revenue, it will further drive valuation recovery.
JPMorgan Chase advises reducing leverage; SOX rises 88% in a single quarter.
According to Mars Finance, citing Chao Xiang Research, JPMorgan Chase's latest Global Semiconductor Weekly Report points out that the Philadelphia Semiconductor Index rose 88% in the second quarter, its strongest single-quarter performance in history. However, institutions believe this upward trend is unsustainable unless earnings are realized or cloud vendors' capital expenditure growth truly slows down. Position data shows that momentum factor holdings have fallen 17% from their June high. After crowded long positions in hardware and semiconductors outperformed crowded short positions by nearly 40 percentage points in June, they have seen continuous net selling in July. The overall US stock position percentile has fallen from the 60th percentile to the 40th percentile within a month.
JPMorgan Chase: Raises Apple's price target from $325 to $345
According to Mars Finance, on July 7, JPMorgan Chase raised its target price for Apple (AAPL.O) from $325 to $345.
JPMorgan Chase: Maintains Overweight Rating on Tencent; WeChat AI Agent Launch Reduces Risk Premium
According to Mars Finance, JPMorgan Chase issued a report stating that the uncertainty surrounding Tencent's WeChat AI Agent lies in whether it can truly integrate into the WeChat platform, the extent of its transaction permissions, and whether Tencent can build a supply system that the AI Agent can utilize without relying on existing e-commerce platforms to open their inventory. With Tencent beginning beta testing of the WeChat AI Agent in June, the bank's confidence in its value creation framework has greatly increased. The agent service is now sufficiently visible, clearly distinguishing between existing parts and those still needing development. This transforms the WeChat AI Agent from an AI option with no clear timeline into a phased rollout project with observable milestones. The bank believes that the initial impact of the WeChat AI Agent launch on the share price is more likely to come from a reduction in risk premium and an increase in valuation multiples, rather than short-term earnings per share growth. The bank maintains its "Overweight" rating on Tencent with a target price of HK$690. (Cailian Press)
JPMorgan Chase: Potential obstacles to a Tesla-SpaceX merger have been underestimated.
According to Mars Finance, on July 8th, JPMorgan analyst Rajat Gupta stated that while a Tesla-SpaceX merger "looks plausible on paper," current speculation surrounding the merger underestimates the potential obstacles hindering the deal. These potential obstacles include regulatory approvals across multiple jurisdictions; governance and voting rights symmetry; and the perception that "the merger will be a SpaceX-led acquisition, rather than a merger of equals." He added, "Overall, we will be watching SpaceX's acquisition currency, the regulatory landscape, and Musk's voting rights in Tesla as catalysts for a potential merger." JPMorgan stated that if the deal occurs, the most likely structure would be a SpaceX-led, all-stock acquisition of Tesla.
Zhipu plans to develop its own AI chip and has already contacted chip companies to accelerate efforts to address its computing power shortcomings.
According to sources familiar with the matter, Zhipu is evaluating the possibility of designing its own AI chip to address the rapidly growing demand for its GLM series of open-source large models and the shortage of computing resources caused by US export restrictions. Odaily has recently made preliminary contact with some Chinese chip design companies to explore cooperation in developing a customized AI processor optimized for its model operation scenarios. Zhipu is one of China's leading AI large-scale model companies, with its GLM series models attracting attention due to its open-source strategy and performance. As the application scale of large-scale models expands, high-performance computing resources have become a key bottleneck for AI companies. Developing its own chips is seen as a way to reduce dependence on external GPUs and improve computing efficiency. Currently, Zhipu AI has not yet made a final decision on whether to proceed with the chip project; the relevant plans are still in the early evaluation stage. (The Information)