On January 21, the US stock market was lively, with the trading volume leaderboard reflecting the interplay of technology companies amidst policy and market dynamics. Tech giants like Tesla, Apple, and Nvidia took center stage.
Tesla's Brand Value Declines, Policy Changes May Impact the Electric Vehicle Industry
Tesla topped the leaderboard, with its stock price dropping 0.57%, closing at $424.07, with a trading volume of $35.741 billion. According to a report by research firm Brand Finance, Tesla’s brand value fell by 26% in 2024 to $43 billion, marking the second consecutive year of decline. This trend is attributed to its aging product line and the controversies surrounding Elon Musk's actions and statements.
Meanwhile, on his first day in office, U.S. President Trump revoked previous government policies supporting the electric vehicle industry, stressing the removal of "unfair subsidies" and "market distortions," potentially impacting Tesla and the electric vehicle sector. Previously, Musk stated that the removal of subsidies would have limited impact on Tesla but would be "devastating" to competitors.
Apple Stocks Under Pressure as Weak Sales Raise Concerns
Ranking third in trading volume, Apple's stock fell 3.19%, closing at $222.64, with a trading volume of $21.54 billion. Two analysts downgraded Apple's rating, primarily due to weak iPhone sales falling short of market expectations. Additionally, investors were disappointed that artificial intelligence has not become a growth catalyst. Since the beginning of January, Apple's stock has cumulatively dropped 11%, the biggest monthly decline since December 2022. JPMorgan has lowered Apple's target price from $265 to $260.
Nvidia Shows Strong Performance as EU Eyes US Export Policies
Ranking second, Nvidia's stock rose 2.28%, closing at $265.84, with a trading volume of $26.384 billion. According to informed sources, the EU is expressing concern over the U.S. decision to restrict AI chip exports to certain member countries, potentially exacerbating industry disputes. Additionally, Nvidia plans to hold its first "Quantum Day" at the GTC conference in March to advance quantum computing, further strengthening its industry position.
Other Tech Stock Moves
- Amazon: Stock rose 2.11%, closing at $230.71, with trading volume of $9.036 billion. Following two drone delivery accidents, Amazon announced a suspension of drone deliveries in some U.S. regions and plans to address the issues through a software update.
- TSMC: Stock rose 3.40%, closing at $218.7, with a trading volume of $4.099 billion. TSMC stated it received $1.5 billion in U.S. government subsidies in the fourth quarter last year, and is confident in the Trump administration's continued support for its U.S. investment plans.
Artificial Intelligence and Quantum Computing Lead the Future
Oracle rose 7.17%, closing at $172.57, with a trading volume of $4.855 billion. Reports indicate Trump will announce an investment plan in AI infrastructure, with Oracle forming a Stargate joint venture with OpenAI and SoftBank. Additionally, quantum computing stocks like Rigetti Computing performed strongly, with stock prices soaring 42.22% and trading volumes of $2.818 billion, spurred by Nvidia’s quantum computing initiatives.
Summary
Tech stocks continue to diverge amidst policy and market dynamics. Tesla's brand value decline and Apple's sales struggles highlight industry challenges, while Nvidia and firms related to quantum computing demonstrate the growth potential of emerging fields. In the future, U.S. government policies and technological innovations will continue to shape market landscapes.
