🐺 WILL CHINA OUTPERFORM THE US?

We just got great news… not just for the markets, but for AI broadly. The twist? The biggest beneficiary might not be the U.S., but China.

Let’s start with the headline:
$NVDA ( ▲ 0.39% )  can continue selling its H20 GPUs to China.
On top of that, $AMD ( ▲ 2.87% )  is now allowed to resume selling its MI308 chips into the region as well.

Markets reacted with a gap up yesterday… though price faded into the afternoon. The rally, while positive, was narrow. It was mostly tech-led… and within tech, it was largely semiconductors doing the heavy lifting.

But over in China?

Big moves.
$FXI ( ▼ 0.45% ) , China’s version of the $SPY ( ▲ 0.33% ) , closed +2%.
$KWEB ( ▼ 0.87% ) , the China tech proxy (basically $QQQ ( ▲ 0.1% ) for the mainland), jumped +4%.
Those are massive ETF moves for one day… especially tracking the Hang Seng and Hang Seng Tech indices.

Zooming in, $BABA ( ▼ 1.06% )  surged +8%. Our Prospero.ai indicator is showing short term bullish action forming. These are usually great setups.

Think of Alibaba as China’s Amazon… but also its largest cloud provider and hyperscaler. Their ability to access H20s and MI-series chips gives them new firepower to meet the compute demand of AI workloads. And while these chips aren’t the latest-gen like what we’re seeing in the U.S., they’re still powerful. And they’ll be purchased in bulk.

This could reignite competition in the global AI race… especially toward Artificial General Intelligence.

And that brings us to the market itself.

Stocks and indexes often front-run capital flows. And while there’s been hesitation around China for the last year, this week’s news may be triggering a second wave of capital rotation into Chinese tech.

So how am I positioned?

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