Outlook for the US market: BofA points out that now is a good time to buy nvidia, and that concerns about AI are unnecessary until 2026. GS also points out that AI is not currently in a bubble.

The number of non-farm payroll employees in the US in August increased by 0.142 million, which was lower than expected. New York Fed President Williams said the interest rate cut was 'appropriate'.
●The number of non-farm payroll employees in the US increased by 0.142 million in August, lower than the expected increase of 0.16 million and the previous increase of 0.089 million.
●The unemployment rate in the US in August was 4.20%, the same as the expected rate and lower than the previous rate of 4.30%. In July, the increase in the unemployment rate raised concerns about a deteriorating economy and led to a sharp drop in stock prices, but in August, it decreased as expected to 4.2%.
●On the 6th, John Williams, President of the New York Federal Reserve, also acknowledged that the decline in inflation and cooling labor market conditions made it appropriate to lower policy interest rates.

It is understandable that the market is skeptical of AI, but there is no need to worry until 2026, according to BofA.
● $Bank of America (BAC.US)$In a report dated September 4th, BofA analyst Vivek Arya stated that while the current market's doubts about AI investment and monetization are understandable, it is a waste at least until 2026.
In a research note, Bank of America stated that corporate investment in equipment is necessary and AI investment not only brings new business opportunities, but is also important for existing profit pools of search and social-related companies.
Bank of America conservatively predicts that cloud equipment investment will increase by 45% compared to the previous year in fiscal year 2024 and by 14% in fiscal year 2025.
Bank of America also believes that the recent decline in stock prices, which has fallen to the lower quartile range of valuation over the past five years, combined with current uncertainties and headwinds, provides a buying opportunity for investors. $NVIDIA (NVDA.US)$

According to a report released by Goldman Sachs on September 5, analysts such as Peter Oppenheimer and Guillaume Jason recommend diversifying investments because the concentration risk of US technology stocks is higher than the valuation risk.
● $Goldman Sachs BDC (GSBD.US)$According to a research report released on September 5 by analysts including Peter Oppenheimer and Guillaume Jason, the fundamentals of the technology industry are strong but the concentration risk is very high, so they recommend exploring diversification. By reducing the concentration risk, investors can not only enjoy the growth of the technology industry, but also seize the growth opportunities in other industries driven by AI technology.
According to the same report, since the end of the 2008 financial crisis, technology has been the driving force behind the global stock market returns, and its earnings have exceeded other major sectors such as media and telecom. The report also justifies the outperformance of technology stocks in relation to the overall market, considering their strong earnings growth. According to the data in the report, the earnings per share (EPS) of the global technology sector has grown by about 400% since 2008, while the average growth rate of other sectors is only about 25%.
Goldman Sachs believes that artificial intelligence (AI) is not in a bubble yet. The report points out that the current valuation of the AI sector is significantly lower than the typical valuations seen in recent bubble periods, such as the Nifty Fifty bubble period in the early 1970s, the Japanese bubble period in the late 1980s, and the dot-com bubble period in the 2000s. The report also shows that the current price-to-earnings ratio (PER) and enterprise value (EV) to revenue median of the MAG7 are only half of the top 7 companies in the dot-com bubble period, indicating that the companies currently dominating this sector are more profitable and have stronger balance sheets than the companies that dominated this sector during the dot-com bubble period.
Goldman Sachs' strategy team believes that the return on investment (ROI) of AI is not a major concern. During the height of the dot-com bubble, TMT stocks spent more than 100% of their operating cash flow (CFO) on capital expenditure and research and development. In contrast, today's TMT stocks have a ratio of just 72%. Goldman Sachs also argues that a significant increase in capital expenditure can actually generate strong returns. For example, when Microsoft made substantial capital investments to build Azure between 2013 and 2016, the gross profit margin of Azure temporarily turned negative, but later turned significantly positive.
According to the data in the report, although high-tech companies are not valued as highly as the leading companies during previous bubble periods, they have the highest market share in decades and account for 27% of the total market capitalization of the S&P, demonstrating an unprecedented level of concentration.

Toyota to cut 30% of its global EV production plan for 2026.
According to market sources, Japan's $Toyota Motor (TM.US)$has reduced its electric vehicle production plan for 2026 by one-third. Toyota had planned to produce 1.5 million EVs in 2026, but it is now adjusting its production plan to 1 million vehicles.
Toyota has set ambitious annual production goals for EVs, but compared to its performance and share in the hybrid segment, the EV business is still in its early stages. Toyota's EV sales last year amounted to just 140,000 units, less than 1% of its total sales.
Earlier this week, Swedish automaker Volvo also abandoned its goal of going all-electric by 2030 and stated that it expects to offer a wide range of hybrid models in its product lineup even at that time. American automakers such as Ford and General Motors have also delayed or cancelled the launch of new electric vehicles due to lower-than-expected consumer demand.