Most Important News

1. Trump Arrives in Beijing with Business Delegation;
2. Morgan Stanley's Wilson Raises S&P 500 Target to 8000 Points;
3. Tesla Expands Berlin Factory with $250M Investment;
4. Nebius Shares Surge Over 12% Pre-Market as Q1 Revenue Exceeds Expectations;

The US Producer Price Index (PPI) for April rose by 6% year-over-year, exceeding the expected 4.9%. The previous value was revised from 4.0% to 4.3%.

Following the release of the US April Producer Price Index data, stock futures experienced short-term declines. As of 03:36 PM Riyadh Time, Dow futures have dropped 0.49%, S&P 500 futures are down 0.03%, while Nasdaq futures have risen approximately 0.34%.

As of 03:37 PM Riyadh Time, top pre-market movements are as follows:

Trump Arrives in Beijing with Business Delegation

On May 13, US President Trump embarked on a visit to China, expressing his honor to join distinguished individuals. The White House announced a delegation of 16 business leaders from sectors like tech, finance, aviation, and agriculture. Notably, NVIDIA Corporation(NVDA.US) CEO Jensen Huang joined at the last minute. Following this, NVIDIA's stock rose over 2% pre-market.

Copper Prices Hit Record High Amid Supercycle Expectations

Driven by demand from AI infrastructure and the renewable energy sector, international copper prices have surpassed their 2021 peak, with a year-to-date increase of 38%. Several investment banks project that annual copper demand growth will average 4.5% over the next five years, 2.3 times the average growth of the past two decades. This emerging commodity supercycle could significantly impact the Federal Reserve's inflation decisions.

Morgan Stanley's Wilson Raises S&P 500 Target to 8000 Points

Morgan Stanley strategist Mike Wilson has increased the S&P 500 target for the end of 2026 from 7800 to 8000 points, with a mid-2027 target of 8300 points. Wilson argues that the market has already undergone substantial adjustments in valuation and breadth, with major risks adequately priced in. He believes strong earnings growth will drive stock returns even if the Federal Reserve maintains its current policy stance. Additionally, structural support from the Trump administration's "rebalancing" policies is expected to bolster the US equity market.

IEA Warns of Potential Oil Price Surge Amid Record Stockpile Decline

The International Energy Agency (IEA) has issued a warning that global oil inventories are depleting at a record pace, exacerbated by ongoing disruptions due to the Iran conflict. In April, crude and refined oil stocks declined by nearly 4 million barrels per day, equivalent to the combined consumption of the UK and Germany. This rapid depletion could weaken countries' ability to buffer against supply shocks. The report highlights that with unprecedented disruptions in Middle Eastern oil supplies, the shrinking buffer may lead to a significant surge in oil prices.

Tech Stocks Surge Amid FOMO

The storage and semiconductor sectors saw a resurgence, with Micron Technology, Inc.(MU.US) rising over 5% and Western Digital Corporation(WDC.US) climbing more than 4%. Intel Corporation(INTC.US), QUALCOMM Incorporated(QCOM.US), and Western Digital Corporation(WDC.US) also gained over 2%. Francis Tan, Indosuez Wealth Asia's chief strategist, noted that investors' fear of missing out (FOMO) in tech currently outweighs concerns over Iran. However, he cautioned that issues related to Iran might resurface if US stock valuations increase further.

Tesla Expands Berlin Factory with $250M Investment

Tesla Motors, Inc.(TSLA.US) announced a $250M investment in its Berlin Gigafactory to enhance electric vehicle battery cell production. André Thierig, a senior manager, shared on social media that this investment will boost annual capacity to 18GWh and create over 1,500 jobs. He highlighted this as positive news amid challenges for the German industry. The Berlin-Brandenburg plant, Tesla's first European manufacturing base, began operations in March 2022.

Wall Street Bullish on Nvidia Ahead of Q1 Earnings

As NVIDIA Corporation(NVDA.US) prepares to release its Q1 2027 earnings on May 20, Wall Street analysts, including Citi, Goldman Sachs, Susquehanna, and Wells Fargo, express increasing optimism. They anticipate Nvidia will deliver "beat and raise" results, driven by strong AI demand. The target price has been raised as high as $315, reflecting expectations of a significant outperformance.

AMD's Investment Strategy Revealed: Marvell Holdings Surge, Quantum Entry

Advanced Micro Devices, Inc.(AMD.US)'s recent 13F filing reveals its strategic investments as of March's end. The company holds 65,516 shares of Marvell Technology, Inc.(MRVL.US), initially valued at $6.5 million, now worth approximately $10.7 million. AMD also owns 1.15 million shares of Sanmina Corporation(SANM.US) and 5.71 million shares of AI-focused Absci Corporation(ABSI.US). Additionally, AMD has entered the quantum technology sector by acquiring $1.5 million worth of Xanadu Quantum Technologies Limited Class B(XNDU.US) shares.

Nebius Shares Surge Over 12% Pre-Market as Q1 Revenue Exceeds Expectations

NEBIUS(NBIS.US) saw a pre-market increase of over 12% after reporting Q1 revenue of $399 million, a 684% year-over-year growth, surpassing the expected $371.4 million. Adjusted EBITDA reached $129.5 million, beating the forecast of $87.2 million. The adjusted net loss was $100.3 million, better than the anticipated $176 million loss. As a spin-off from Yandex, Nebius focuses on GPU cloud computing and AI training services, benefiting from the global surge in AI computing demand.

Google Prepares Mobile AI Push: Gemini to Integrate with Android Ahead of Apple's Major Update

Ahead of the Google I/O developer conference, Alphabet Inc. Class C(GOOG.US) is unveiling a series of Android system upgrades. These enhancements aim to transform its Gemini model from a chatbot into a versatile operating layer across phones, browsers, cars, and laptops. With Apple's WWDC just weeks away, where Apple Inc.(AAPL.US) is expected to showcase its Gemini-driven Apple Intelligence system, Google's proactive strategy may increase competitive pressure on Apple.

Vertiv's Stock Soars 127% Amid AI Infrastructure Boom

Riding the AI infrastructure wave, VERTIV HOLDINGS LLC(VRT.US) has surged 127% year-to-date, outpacing Wall Street expectations. Citi analysts note clear prospects for long-term sales and profit growth due to significant investments in AI data centers. They anticipate VERTIV HOLDINGS LLC(VRT.US) will raise its organic growth outlook to 12%-24%. In Q1, net sales rose 30% to $2.65 billion, and adjusted EPS increased 83% to $1.17, surpassing forecasts. Organic sales grew 23%.