Following the US Democratic Party's sweeping victory in the midterm elections, AI data centers are facing policy uncertainty, China Merchants Securities International said in a research report. The broker maintained its recommended rating on the internet sector.

The Democrats regained control of the House of Representatives and are likely to control the Senate, the report mentioned. Governorships in key AI data center growth states including Texas, Georgia and Ohio also shifted from Republicans to Democrats, exposing the industry to risks of stricter federal scrutiny and tighter state-level approvals. Congress could use hearings, investigations and legislation to require large power-consuming projects to bear higher grid and environmental costs.

However, presidential veto power and bipartisan consensus on AI national competitiveness are predicted to constrain any comprehensive halt to construction projects. Near-term risks are more concentrated at the state and local levels, including slower approvals, rising grid connection costs and stricter disclosure requirements. Policy changes in core growth markets may affect project delivery faster than federal legislation.

The broker maintained Overweight ratings on Meta Platforms, Inc. (META.US), Alphabet Inc. (GOOGL.US), Amazon.com, Inc. (AMZN.US) and Microsoft Corporation (MSFT.US), with TP at USD830, USD460, USD326 and USD640 respectively. AI giants are simultaneously accelerating external financing, while surging capital expenditures have pushed overall free cash flow into negative territory. If tighter approvals and higher grid infrastructure costs delay some projects, capex deployment and financing pressure may ease simultaneously, alleviating market concerns over uncontrolled capital spending.

Meanwhile, Elon Musk's close ties with the Republican Party may expose Tesla, Inc. (TSLA.US) and SpaceX (Underweight, TP: USD118) to greater congressional scrutiny pressure. According to media reports, Musk contributed nearly USD500 million to Republican candidates and political groups during the midterm elections.
~

AASTOCKS Financial News
Website: www.aastocks.com

Based on weekly NEV order data, China's NEV market continued to recover in Week 43 (Oct 26 to Nov 1), with total orders growing 48% WoW to 207,000 units, Daiwa said in a research report. Order momentum improved for most major automakers, with 8 of the 10 tracked brands recording WoW growth.

At the brand level, LI AUTO-W (02015.HK) and XPENG-W (09868.HK) skyrocketed 840% and 240% WoW respectively, starkly outperforming the broader market, the broker noted. XIAOMI-W (01810.HK) (up 28% WoW), GEELY AUTO (00175.HK)'s Zeekr (up 17% WoW), Tesla, Inc. (TSLA.US) (up 14% WoW) and NIO-SW (09866.HK) (up 12% WoW) also maintained positive growth.

Standing in contrast, GEELY AUTO's Galaxy was the only brand to record a WoW downswing (down 3% WoW), while BYD COMPANY (01211.HK) was flat WoW. Looking ahead, upcoming new model launches and year-end promotional campaigns may further support demand, although competitive pressure remains intense and brand performance divergence is expected to last.
~

AASTOCKS Financial News
Website: www.aastocks.com

Chinese AI developers are expected to receive only a small portion of the advanced NVIDIA (NVDA.US) chips they have ordered over the coming months, Bloomberg, citing sources, reported.

BABA-W (09988.HK), TENCENT (00700.HK), ByteDance and other Chinese AI and cloud companies have collectively ordered about 6 million Nvidia RTX Pro 5500 chips, but these companies are assumed to receive only tens of thousands of units over the next four months, or about 1%.

Although the US has prohibited Nvidia from selling its most advanced chips to China, the RTX Pro 5500 is not subject to restrictions. Sources said that the total value of orders so far is about USD70 billion based on a unit price of more than USD11,000 per chip.

Major Chinese AI developers forecast the first batch of several thousand RTX Pro 5500 chips to be delivered before the end of 2026, followed by another batch of tens of thousands around February 2027.

As Nvidia is predicted to expand production capacity, Chinese hyperscale cloud computing providers estimate they may receive about 700,000 RTX Pro 5500 chips by the end of 2027, sources divulged. However, Nvidia warned customers that capacity will remain limited for the foreseeable future due to product scheduling conflicts.

The company allocated more manufacturing capacity to next-generation products such as Rubin, and supply of the RTX Pro 5500 is expected to remain constrained.
~

AASTOCKS Financial News
Website: www.aastocks.com

State Street Corporation (STT.US) Chairman and CEO Ron O’Hanley said it is hard to see AI as a bubble, as market demand is supporting substantial investment in AI technology.

He said the construction of new data centers is not being carried out speculatively, but is backed by real orders. Whether a bubble emerges will depend on whether AI becomes more efficient, making all the capacity currently under construction redundant.

Following the earnings release by Alphabet Inc. (GOOGL.US), some market selling may have already been inevitable. O’Hanley said some selling in the market may have been overdue, but at present the market does not appear to be experiencing disorderly conditions.
~

AASTOCKS Financial News
Website: www.aastocks.com

PIMCO CEO Emmanuel Roman said at the Fifth Global Financial Leaders' Investment Summit this morning (3rd) that AI-related financing could elevate to around USD10 trillion over the next five years and eventually reach overheated levels, compared with the approximately USD12 trillion size of the US bond market.

He said downside risks could emerge from rising US interest rates, war in the Middle East and a eurozone crisis, and the problem of excessive financing may then surface.

Blackstone Inc. (BX.US) President Jon Gray said at the same occasion that the current skepticism may be healthy, but stressed that the broader momentum of AI development indicates related investment will continue to increase, while demand for capital will also grow substantially.

He believed it would be a mistake to underestimate the upcoming productivity gains, as well as changes in consumer and corporate behavior.
~

AASTOCKS Financial News
Website: www.aastocks.com

Marvell (MRVL.US) announced the acquisition of optical component maker Lumentum (LITE.US) at an enterprise value of USD115 billion, meaning the merger of two companies backed by NVIDIA (NVDA.US). Marvell CEO Matt Murphy said he will continue to serve as chairman and CEO of the combined company, adding that the transaction will benefit NVIDIA.

Marvell shares closed down 12.72% overnight at USD171.41. Some analysts questioned whether the acquisition price was too high, as the deal exceeds more than half of Marvell's market capitalization. Lumentum shares also closed down 18.59% at USD684.4.

Lumentum shareholders will receive 4.5 shares of Marvell for each share held, equivalent to USD1,132 per share and representing a premium of 23.9%. The transaction is expected to be completed in 1H28, after which Lumentum shareholders will own a 33% stake in the combined company.
~

AASTOCKS Financial News
Website: www.aastocks.com

Meta Platforms, Inc. (META.US) is seeking to raise at least USD20 billion through the issuance of multi-currency bonds to fund the construction of AI infrastructure, Bloomberg, citing sources, reported.

The bond issuance size could reportedly increase depending on investor demand. The company has asked Citigroup, Inc. (C.US) and Morgan Stanley (MS.US) to hold investor conference calls.

Meta's potential USD-denominated bonds may have maturities ranging from 5 years to 30 years, while EUR-denominated bonds may have maturities ranging from about 4 years to slightly more than 38 years, sources divulged.
~

AASTOCKS Financial News
Website: www.aastocks.com

Oracle Corporation (ORCL.US) plans to sell shares worth a total of USD10 billion at a price of USD116 per share, representing a discount of about 11% to last Friday's (October 30) closing price of USD130.67,
Bloomberg, citing sources, reported.

Prior to the share offering, Oracle issued USD10 billion of bonds on Monday (November 2), with maturities ranging from 3 to 20 years.

On the news, shares of Oracle closed down 8.76% at USD119.22.
~

AASTOCKS Financial News
Website: www.aastocks.com

Chinese robotics companies continue to support multiple development initiatives of US technology firms, particularly in robotic hand technology. Over the past few months, NVIDIA (NVDA.US) showcased two humanoid robot training solutions, one using Sharpa robotic hands and the other using Wuji robotic hands. The founders of both companies have ties to Shanghai.

Pan Yunzhe founded Wuji in 2019 and later relocated most of the team to Shenzhen. Investors include Ant Group, HSG and Future Capital. According to PitchBook data, Wuji Hand 2 released a demonstration video last week showing it could autonomously spin a pen despite external interference.

When NVIDIA unveiled its first reference humanoid robot design on May 31, it also mentioned Stanford University and ETH Zurich. The system uses the robot body of YUSHU TECHNOLOGY (688836.SH) and Sharpa robotic hands, with deliveries originally scheduled to begin by the end of 2026.

NVIDIA did not immediately respond to inquiries regarding whether deliveries had already begun and whether researchers would test both reference robots simultaneously.

Singapore-headquartered Sharpa was co-founded by HESAI-W (02525.HK) CEO Li Yifan. Sharpa said its manufacturing and research operations are based in Shanghai.
~

AASTOCKS Financial News
Website: www.aastocks.com

OpenAI signed agreements with energy companies, investment firms and government agencies in the UAE to deploy its technologies, deepen cooperation with the local market, and seek to raise billions of USD in funding from UAE state capital.

According to a statement from the Abu Dhabi Media Office, OpenAI CEO Sam Altman will travel to Abu Dhabi for talks with Crown Prince Sheikh Khaled bin Mohamed Al Nahyan.

Under the latest agreements, Abu Dhabi National Oil Company has become the first energy company to deploy OpenAI's frontier technologies. OpenAI's AI agents will continuously forecast crude oil supply, demand, prices and profit margins, and predict their impact before disruptions occur.
~

AASTOCKS Financial News
Website: www.aastocks.com