Last Friday’s significant drop left the entire market bewildered.A large volume drop contains excellent opportunities!In fact, there is no essential difference between a large rise and a large fall; the core issue is the short-term changes in market sentiment and risk appetite.In terms of short-term news, last night the NASDAQ surged, and the Federal Reserve released some dovish statements, easing fears of liquidity shortages.Additionally, Trump announced the “AI Manhattan Project”.
The Trump administration has launched a national-level AI research program, integrating computing power and data resources across the United States, aiming to shorten the speed of scientific discoveries from “years” to “days”.
On November 24, local time, under the lights of the Oval Office, Trump solemnly signed an executive order titled “Genesis Plan“. This project, compared by the White House to the “largest mobilization of scientific resources since the Apollo program”, marks the formal upgrade of the AI competition to a national strategy in the United States.
However, these continuous streams of news are merely on the level of “tech”; as retail investors, it is challenging for us to track them all the time.
Last weekend, I updated this valuation article:NVIDIA chain, back in the hitting zone again!?In this article, I clearly introduced the essence of market capitalization and stock price, and interested readers should take a close look.Stock price: It is a price at a temporary point, representing only the portion of investors currently trading who are willing to transact at this price.Stock price: In the long term, it fluctuates around the company’s value, while in the short term, it is mainly influenced by market sentiment and risk appetite.For value stocks like Moutai, the pricing is based on the current company’s profitability and dividend capability, resulting in a very stable price-to-earnings ratio with minimal fluctuations.In contrast, for growth stocks like AI hardware, the pricing is based on future growth potential, which carries significant uncertainty, leading to substantial fluctuations in their price-to-earnings ratios.For example, in the case of New Yisheng, the valuation span for growth stocks can range from 5 times to 50 times, creating a 10-fold difference.Thus, investing in growth stocks carries very high risks; if the timing is wrong and you leverage heavily at 50 times, you could end up with nothing.Conversely, if you can go against the trend and invest heavily at 5 times, even adding a bit of leverage, you could reap substantial rewards.Therefore, the key to investing in growth stocks is:(1) Conduct in-depth research on the development of the industry chain, understand the company’s growth potential and profitability, and be able to value the company scientifically.(2) Pay close attention to the position of the target company and the market’s risk appetite.Be able to buy against the trend at the bottom and be willing to sell to realize profits after a significant rise.Although these two points are straightforward, it is likely very difficult to truly excel without decades of experience.I have been closely following the AI hardware sector, including the NVIDIA supply chain in North America, the Google supply chain, the Tesla supply chain, the Apple supply chain, and the domestic computing power sector, regularly updating the valuations of sector targets.I also consistently adhere to the value investment philosophy, with all target selections and strategies closely revolving around value.For more industry trends and core target valuation discussions, feel free to follow:
Disclaimer and Risk Warning:The above content is collected and organized from the internet, and under no circumstances does it constitute any investment advice to anyone. Please do not use it as a basis for investment. The individual stocks mentioned in the text are only for static review of technical, fundamental, and news aspects, and are not recommendations. Please do not use them as investment references. The market has risks; entering the market requires caution.