Hello, this is Miju from the University of the United States. Today is September 5th, and I am starting today's U.S. stock news. As always, I welcome you to Mijone, where we uphold the principles of U.S. stock investment. In the UK, the academic year starts in September, while in Korea, it typically begins in March. So, a new school year begins in September. This year is a bit special for my family because my son has finally become a secondary student. In Korea, that means he is now a middle school student. This morning, I felt a bit strange; I can't believe my son is already a middle schooler. It makes me feel like I've aged a lot. I wonder if he will do well. From my memories, we studied very hard when we were in middle school. Nowadays in Korea, even elementary school students are studying diligently.

However, the situation in the UK is somewhat different. In the UK, studying typically begins about two to three years before going to university. Until middle school, students usually only do the homework assigned by the school and spend most of their time playing, engaging in sports, and learning arts or musical instruments. In this way, British children enjoy a school life that is very different from what we might remember. This is why I am living with children in a country like the UK, which has many challenges. I want to help our children escape from the hell of entrance exams and live their lives joyfully until just before they go to university. Anyway, I feel a bit emotional today, thinking about the next few years.

There are about 6 or 7 years left until my son goes to college. I can see a bit of hope. After that, I will also be able to pursue YouTube broadcasting as a hobby. There shouldn't be any economic difficulties once the kids grow up. So, it was a morning filled with a lot of thoughts. These days, the U.S. stock market isn't doing very well either. The severe volatility is causing a lot of confusion for me. I will organize my thoughts and prepare for today's broadcast. Let's start with today's stock news on September 5th. First, let's summarize the U.S. stock market from yesterday. Looking at the S&P 500 map, it closed mixed yesterday. The number of rising stocks and falling stocks is almost similar. While it seems like there are slightly more stocks in red, one good thing is that the red stocks are generally quite dull.

Because the discussion is not clear, there are many stocks with relatively small declines. You can see that there are some stocks with clearer movements. For example, BARA dropped by 3.38%, showing a noticeable red. Intel also fell by more than 3%. As for ELV, that stock decreased by 2.66%, and relatively clear red indicators are not widely found. On the other hand, stocks like Apple fell slightly by 0.86%, Microsoft decreased by -0.13%, and Google also dropped slightly by 0.50%. Overall, while the market breadth has weakened a bit, the good news is that there are not many stocks showing severe fluctuations. I will summarize this. Next, let's check the market breadth of the S&P 500. So far, the market breadth is still decent, recording 70.97. The long-term trend is also showing that 73.5% of stocks are in a healthy state.

Therefore, the market's momentum has not yet collapsed, and there are a significant number of rising stocks. The momentum is quite strong. If you look at the Fear and Greed Index, the market is still in a neutral position, recording a score of 53. Last week, there was a bit of greed, but after experiencing a correction in early September, it has taken a step back. There is still no sense of fear in the market, and there is neither greed nor fear; it is, in a way, a vacuum state. As we approach this Friday, when the employment report will be released, we can expect that the direction of the market may be determined then. Yesterday, the AAII survey results were announced. This survey is conducted weekly, asking investors whether they think the U.S. stock market will be up or down in the next six months. It is a simple question.

As of September 4th, 45.3% of market participants predict that the U.S. stock market will rise after six months, presenting a positive outlook. Meanwhile, 29.8% are neutral, indicating uncertainty. The remaining 24.9% forecast that stock prices will decline from the current levels, reflecting a negative outlook. Therefore, compared to a week ago, when 51.2% were optimistic, the number of those claiming a rise has significantly decreased to 45.3%. However, despite this decline, there are still far more proponents of a rise than those predicting a drop. Thus, the overall sentiment seems to be reasonably positive. Next, I will summarize the movements of the three major indices. Yesterday, the Dow Jones recorded a slight increase of 0.092, indicating a sideways trend. The S&P 500, on the other hand, experienced a minor decline of 0.16%.

The Nasdaq also fell by 0.3%. Bitcoin is slightly up, hovering around 57,000. Yesterday, the Russell 2000 was also down, decreasing by 0.19%, unable to maintain its upward trend in the early stages. The reason why the Russell 2000 could not sustain its early upward trend will be explained shortly. Next, let's look at the performance of the major stocks. Yesterday, Tesla rose by 4.18%, performing the best. AMD was up by 2.87%, while Apple increased by 1.72%, and Broadcom rose by 0.87%. Bitcoin also went up by 0.41%. Additionally, Palantir rose by 0.26%, TSMC by 0.24%, Meta by 0.19%, and B2 by 0.18%, showing an upward trend, while the rest declined. Microsoft fell slightly by 0.13%, the Russell 2000 ETF was down by 0.17%, and Uber decreased by 0.28%.

- Aitron - Alphabet - Dcision Daily Small Cap Bull 3 Times ETF - Nvidia - Finally, recently, Zeta, which had the strongest momentum, dropped by 2.70% yesterday, making it the worst performer. After the market close, it further declined by 3.38%. I will explain this in detail through an article shortly. Yesterday, Russell, as well as all three major indices, failed to maintain their initial upward trend, and stock prices fell. The reason for not being able to sustain a good trend throughout the day was the JOLTS report released in the morning. According to the JOLTS report released yesterday, the number of jobs in the United States has decreased to its lowest level since January 2021. Therefore, an unfavorable economic indicator was announced, increasing the probability of a recession.

If you look at it this way, let's take a closer look at the details. In July, the number of jobs fell to the lowest level since early 2021, while layoffs actually increased. This aligns with other signs of a slowdown in worker demand. Recently, many economic indicators have shown that the U.S. economy continues to exhibit signs of slowing down. The Job Openings and Labor Turnover Survey, commonly referred to as the JOLTS report, which was released yesterday, also reflects this narrative. It can be interpreted negatively. According to the JOLTS report, U.S. job openings were revised down from 7.91 million to 7.67 million, a figure lower than all the forecasts in Bloomberg's survey of economists. Therefore, this differs from other economists' expectations.

There is a projection that has been announced, and the figures released yesterday fell significantly short of this projection. If we look at the graph, the upper graph shows the level of job openings, which we refer to as the number of jobs available. The lower graph represents the net number of layoffs. If you look at the top, you can see that job openings peaked in March 2022, when a significant number of jobs were created. However, the number of jobs has been consistently decreasing since then. The downward trend is evident. Looking at the number of layoffs below, there was a brief pause in the increase, but the important point is that there was a sharp rise in July compared to June, indicating that unfavorable figures were announced. This decline in job openings aligns with recent economic data showing that the labor market is softening, reflecting a decreasing trend in job growth.

Concerns about a potential recession are growing as the economy slows down, the unemployment rate increases, and job seekers are experiencing significant difficulties in finding work. In July, disappointing employment figures were released, and the employment report published a month earlier was not very good. Furthermore, after a significant downward adjustment in wage growth last year, Federal Reserve officials and market participants are focusing on the August employment report that will be released on Friday. They are particularly attentive to whether another poor report could trigger a large-scale interest rate cut. Therefore, if the employment report released this Friday shows very poor numbers, it raises the possibility of a 0.5% rate cut in September, rather than just 0.25%. This outlook is emerging. As I mentioned yesterday, if there is a 0.5% drop, it cannot be considered good news.

There isn't, because the Federal Reserve lowering interest rates by 0.5% instead of 0.25% can be interpreted as an increased probability of a recession. After the release of the Beige Book report yesterday, Treasury yields fell, and traders have increased their bets on aggressive rate cuts by the Federal Reserve. The fact that Treasury yields have dropped means that Treasury prices have risen. When Treasury prices rise, it indicates an increase in the popularity of Treasuries. Why has the popularity of Treasuries increased? According to the current Jolt report, the probability of a recession has risen. This means there is a need for safe havens, and a reliable option is indeed the government-issued Treasury. Therefore, it has risen as a safe asset, and as Treasury prices have increased, yields have fallen. The number of layoffs is as of March 2023.

Afterwards, the number of layoffs increased to the highest level of 1.76 million, and it is reported that the layoffs in the leisure and hospitality sectors are driving this upward trend. This part is somewhat concerning; the number of layoffs has significantly increased. The highest number of layoffs since March 2023 has been announced, and notably, the sectors with the most layoffs are leisure and hospitality. This is in the context of the July job report, and July marks the beginning of the peak season. With summer vacations approaching, the increase in layoffs in leisure and hospitality sectors is certainly not positive news, in my personal judgment. At the same time, the hiring numbers showed a slight recovery from the lowest levels since April 2020, which is a positive sign. The number of job openings that the Federal Reserve is closely monitoring decreased by 1.1 million, still recording the lowest figure in three years. It has dropped significantly because it peaked in 2021.

The ratio was 2 to 1. This means that there was one unemployed person for every two jobs available. Therefore, even if people were missing, there were still not enough jobs. However, this has now decreased to 1.1 jobs per unemployed person, almost matching perfectly. This indicates that the labor market has cooled down significantly; we can no longer find the previously hot conditions. The economy is slowing down considerably. As a result, a rate cut in September is almost certain, and the important question now is whether it will be 0.25% or 0.5%. This will be reflected in the upcoming employment report. I have been sharing investment information with you through the YouTube channel for over four years now, and the membership program has been running for more than a year. As I interact with many people, I personally feel a bit concerned.

Many people are discovering this. I have a deep affection for my subscribers and members, which is why I read each comment they leave very carefully. While reading the comments, I sometimes wish that certain individuals would refrain from investing in stocks, or if they do invest, that they would simply purchase ETFs. The reason for this is that when we invest in the U.S. stock market, we face certain risks. The risks we talk about in stock investing are quite different from the risks we encounter in everyday life. The risk in stock investing usually refers to volatility—prices going up and down repeatedly. Many people find it quite difficult to accept this kind of risk. For example, if the stock price...

Even if it drops by 10%, there are people who think, Let's just sell everything and get out. Or, for example, I invest in ten stocks, and while seven of them are going up, three are going down. There are many people who struggle a lot with those three stocks that are falling. Also, as you all know, in August, all three major indices closed in the positive. Of course, the stock prices dropped significantly at the beginning. However, despite the dramatic drop and subsequent recovery, there are still people who remember August as a very difficult month. Every time I read comments like this, I realize that those individuals are having a tough time with their investments. I personally hope that they might consider moving to safer assets. So, anyway, today we will address those who are experiencing a lot of stress from stock investments.

I have prepared a message for those who are struggling during the downturn in September. Let's take a look at what it says. Welcome to September, historically one of the worst months for stocks. On Tuesday, after a long Labor Day weekend, investors returned to find that the market had fallen due to concerns over the weakening Chinese economy, ongoing stagnation in the U.S. manufacturing sector, and declining oil prices, leading to sell-offs in stocks, particularly in technology and AI companies like NVIDIA. However, investors are being advised to take a deep breath and relax. This is not the time for Chicken Little to run around declaring that the sky is falling. We need to stay focused. Initially, the stock market plummeted on Tuesday, causing market volatility to surge, but Wall Street's fear index, the VIX, only rose from the mid-teens to the low twenties. This is a far cry from the panic experienced just a month ago.

The volatility index has risen sharply above 65, which is quite different from before. Therefore, compared to early August, September seems insignificant. This is what I'm trying to say. The demand index shows that stock prices have slightly declined after the labor turnover survey in July indicated a larger drop than economists had expected. The Federal Reserve's interest rate futures now reflect a situation where there is over a 40% chance that rates will be lowered by 0.5% at the Federal Reserve meeting on September 18 due to weakened job numbers. To reiterate, the Fed will do its utmost to achieve a soft landing by avoiding a recession while lowering inflation. They will provide assistance through interest rate cuts, and September is likely to be the first rate cut. There is also talk of potentially lowering rates more in the future. Therefore, to summarize what has been discussed so far, the economy is showing signs of gradual slowdown.

The reason we are seeing signs of an economic slowdown is that, as we well know, the benchmark interest rate has been maintained at a very high level for too long. The Federal Reserve raised interest rates to slow down the economy, and they have succeeded in achieving their original goal. Therefore, if we continue to see signs of economic slowdown from now on, the Fed will likely lower interest rates to stimulate the economy. This can be viewed positively. Jordan Klein, an analyst at the Jefferies Group, stated on Tuesday that he believes some of the selling pressure has been excessive. He argues that the downward pressure on the economic cycle and the commodities sector has worsened due to the weakening economic indicators from the U.S. and China released over the past few days. He emphasizes that this is not new information; it is something we have been aware of. He also notes that the economy is slowing down.

However, it was necessary to take measures to bring inflation back to the Federal Reserve's target of 2%. This is something we must not forget. What we have been hoping for so far is that the Federal Reserve should control inflation. Therefore, they raised interest rates to manage inflation, and as the economy slows down, inflation is being contained. Yet, instead of declaring victory, we are merely worrying. This can be understood. Klein emphasizes that fundamentals are important, and there are more positive aspects than negative ones in terms of fundamentals. Therefore, rather than just looking at macroeconomic factors, if we examine how strong the current fundamentals are, we can surprisingly find many positive signs. This is what is currently being discussed. Next, we will hear from someone working at the Rockefeller Global Family Office.

Chief Investment Officer Jimmy Chang points out that September is generally a terrible month for stocks. This is important because the volatility in September is often a self-fulfilling prophecy, as investors anticipate significant declines throughout the month. What this means is that we all know September is typically the worst month. Therefore, if stock prices drop significantly, many people might think, Wow, the stock prices are really falling; I should sell, leading to a rush to sell. Because everyone expects a decline, the reaction to the actual drop can be quite severe. Additionally, eToro U.S. investment expert Brecken Wayne pointed out that the S&P 500 index has averaged a 2.3% decline in September over the past ten years. Thus, stock prices tend to fall in September.

It should be thought of as a decline. The S&P 500, Nasdaq 100, Dow, and Russell 2000—all indices have recorded average negative returns in September over the past 5, 10, and 20 years. Therefore, looking at the four major indices in the U.S., whether for 5 years, 10 years, or 20 years, the average return has always been negative. Thus, it is only natural that September is a month of decline. This is what is being said. Therefore, the sell-off on Tuesday is not surprising. Furthermore, Brack Pennell from the UN specifically mentioned geopolitical tensions and concerns about the economy, as well as the noise surrounding the U.S. elections, stating that investors need to overcome the recent volatility surge and deal with various short-term headwinds. Thus, one should not be too shaken. The stock prices are expected to rebound soon, so just a little patience is needed.

Please wait. This is the message being conveyed right now. Next, we have the Bespoke Investment Group, which pointed out that the S&P 500 index fell by 2.1% on Tuesday, marking the largest drop on the first trading day since May 2020 and the worst first day of September since 2015. However, Bespoke analysts also added that it is very common for markets to drop sharply at the beginning of the month. Therefore, it is not unusual for September to see significant declines at the start. They are essentially saying that stock prices tend to fall a lot at the beginning of September. There are specific statistics available: since 1953, the S&P 500 index has dropped by more than 1% on the first trading day of September a total of 14 times. Thus, the message being conveyed is that it is not surprising to see stock prices fall significantly at the beginning of September, so one should not be overly shaken by this. Now, what does that mean?

Investors should be aware of what to do now. It has been conveyed that stock prices typically drop significantly in September. So, what actions should our investors take? Let's discuss that. 

First, Lee Chang mentioned that the cycle, which began earlier this year, where defensive stocks, particularly those that pay high dividends, have started to rise at the expense of soaring tech stocks, could once again gain momentum. This implies that the breadth of the market will expand. Therefore, the advice is not to focus solely on tech stocks but to invest in various sectors. However, it is also emphasized that tech stocks should not be ignored. According to Klein from Mizuho, manufacturing data has recently shown significant weakness. Nevertheless, companies like Microsoft, Google, Meta, and Amazon...

These companies' AI cloud capital expenditures will not slow down or be affected. Mega tech companies will continue to pour money into AI and data centers. This is what is being discussed right now. If these predictions turn out to be correct, it can also be seen positively for semiconductor companies, including Nvidia. Next, according to Etoro, there is a ray of hope for investors worried about increased volatility in September. What this means is that historically, in eight out of the last nine times the S&P 500 index fell in September, the U.S. stock market rose over the following three and six months. Therefore, it suggests that in the next three and six months, stock prices will go up. The only exception was during the 2008 financial crisis.

Currently, very few people expect a recession or market collapse similar to that of 2007 to 2009, despite the concerns of investors. Therefore, unless we are facing a financial crisis like that of 2008, which occurs only once every few decades, the period from now until September may be somewhat challenging. However, after that, for the next three to six months, the U.S. stock market is likely to rally enthusiastically again. Thus, we should not be disheartened by gradual volatility. This message can be understood in that context. Next, let's move on to Nvidia. There is an article stating that Nvidia's stock price must hold above $100. Through this article, we can also look at various experts' forecasts for Nvidia's stock. On Tuesday, there was a sharp sell-off, leading to a market capitalization drop of 279 billion won. Many investors are wondering where the bottom for Nvidia might be.

The chief global strategist, Jay Woods, is speaking. According to this expert, a price of $100 per share is a key level to watch, as it corresponds to last month's lowest closing price. On Wednesday, Nvidia's stock price fell by 3.6% in early trading but has since slightly risen, trading at $106. Therefore, it is highly likely that we are at the bottom, and significant declines are not expected from this point. We do not want to see the stock price surpass the August lows and record new lows. If new lows are reached, it would at least suggest a change in the situation from a technical perspective. This means that if the $100 level breaks down, there is a high possibility of a significant further decline in stock prices. Now, if we take a look at the chart, the $100 mark is right here. The $100 level has two meanings; the first is from earlier this year, starting in March.

Until May, Nvidia's stock price was in a sideways movement, and you can see this box range here. However, as it broke out of this range, the stock price began to rise, and this marked a point where it surpassed $100. The second significant point is that in early August, Nvidia's stock price fell sharply. The moment it rebounded was right around the $100 mark. Therefore, considering these two facts, we can expect that $100 will serve as a very strong support level. If such a significant support level of $100 is breached, there will inevitably be considerable downward pressure. However, according to some opinions, it is anticipated that after buying pressure is detected around the $100 area, there may be a brief sideways movement. Thus, it is positively understood that there will continue to be buyers at the $100 mark. In the last three trading sessions,

Recently, the significant sell-off that caused NVIDIA's stock to drop by as much as 14% was triggered by the chip manufacturer's performance not meeting high expectations. In fact, the results weren't bad, but the expectations were so high, particularly regarding guidance, that the guidance announced fell short. It seems appropriate to say that. Additionally, two research reports released on Tuesday drew attention to companies' spending on artificial intelligence, which inevitably heightened investors' anxiety. Furthermore, after the market closed, Bloomberg reported that NVIDIA received a subpoena as part of a U.S. Department of Justice antitrust investigation. This could be understood as additional bad news; however, NVIDIA has stated that they have not received such a subpoena.

Next, we have Michael Kirkbride, a portfolio manager at Evercore Wealth Management. This expert mentions that there is an issue with NVIDIA's stock price; the problem is that there are not many positive catalysts on the horizon. Therefore, he suggests that there is unlikely to be any good news for a while. We are currently in a sort of vacuum, as earnings reports have concluded, and many economic indicators are set to be released this month. Before that, a lot of caution is needed. What this means is that we can generally classify the forces that move stock prices into two categories: the first is the market's condition, which we typically refer to as macroeconomic influences. The other is the fundamentals that the company possesses. However, since earnings reports have already concluded, there are no significant positive developments anticipated for some time. Therefore, there will be no changes in the fundamentals.

For a while, there won't be any talk about this. As economic indicators continue to be released, the macroeconomic impact will cause Nvidia's stock price to fluctuate significantly. You can see this as a prevailing opinion. Therefore, when such trading gaps occur, it essentially becomes a market that reacts very long-term. Thus, every time economic indicators are released, Nvidia's stock price will continue to be shaken. This is understandable. The decline of global chip manufacturers and risk assets has led to Nvidia's position, which has been synonymous with the AI market, after months of turmoil. This means that recently, Nvidia's stock price has been moving tremendously. The drop on Tuesday marks the seventh decline in two months, with the stock price falling more than 6%. Therefore, Nvidia's stock price has fallen over 6% for the seventh time in just two months. This indicates that we can observe a state of extreme volatility.

Investors are also reflecting on last month to identify the point at which Nvidia's stock price might hit bottom. At the beginning of August, Nvidia's stock price experienced a significant drop, falling 27% compared to its peak in June. Just a few days later, it rebounded again within 5%. The combination of macroeconomic instability and new concerns about the sustainability of large-scale spending on AI has brought the reasons for this underperformance back into focus. Therefore, there are two reasons why Nvidia's stock price is declining. The first is the uncertainty about whether we will enter a recession. The second is the question of whether the current excessive spending on AI can continue. This is how it looks. A research report released on Tuesday by JP Morgan Asset Management and BlackRock Investment Institute indicated that Nvidia's major clients are spending billions of dollars.

We focused on concerns about generating relatively low profits. Recently, mega tech companies have been pouring enormous amounts of money into purchasing GPUs. However, looking at the actual results, they are not receiving many benefits; it is not leading to profits. Therefore, if this kind of investment does not result in profits, questions arise about how long they can continue investing in GPUs. According to Michael Ballett, chairman of the Market and Investment Strategy Division at JP Morgan Asset Management, there needs to be widespread demand from corporate clients, including customers like OpenAI training new AI models, in the next 12 to 18 months to justify the massive expenditures on this technology. Meanwhile, Jin Boibie, leading BlackRock's investment research, stated that the increase in data center construction and processing capacity is...

Generally, it takes a few minutes to complete, but it is said to take years, emphasizing that investors need patience. This suggests that data centers are lacking, and due to the significant increase in processing capacity required by AI, this process is not feasible in the short term. Therefore, more time is needed. This can be understood as an indication that if one invests with a long-term perspective, NVIDIA will succeed. Nevertheless, Bobbie recently mentioned that the sell-off in tech stocks hints at the possibility of rebuilding holdings. Investors should maintain their positions with an increased focus on AI stocks. Thus, given that stock prices have fallen significantly recently, it is understood that now is a good time to buy AI beneficiaries. Fredon Capital's Woods and Evercore's Kirk Bride also remain positive about NVIDIA in the long term.

Woods believes that there is no reason to be concerned about the recent stock price decline. Kirk Bride has stated that there are no fundamental issues in the company or its earnings report; the fundamentals are strong. Kirk Bride also mentioned that they remain long-term holders and that Nvidia has not heard any indications from its customers that they plan to change their spending. Therefore, they will act as buyers here and take advantage of the stock drop. A very important point has emerged: during the recent earnings conference calls of mega-tech companies, there was a common assertion that there is currently a GPU shortage. They need to increase AI capacity but are unable to do so. Additionally, they have all expressed a commitment to continue increasing AI investments, not just this year but also into next year. Despite this,

Despite this, market participants are doubting that such investments can continue, which has led to a drop in Nvidia's stock price. Therefore, we each have to decide whether to believe what the CEO has said or to be troubled by these market rumors. Personally, I think about this. Next, the prepared article is also related to news about Nvidia. From the perspective of investors who are investing in Nvidia, there is one fact that sometimes becomes clear: we have been focusing too much on artificial intelligence recently. However, the benefits that Nvidia can enjoy do not come solely from artificial intelligence. In the near future, there is a very high possibility that autonomous vehicles will become widespread. It's not just that; the era of the metaverse will eventually arrive, and there is also the possibility that humanoid robots will be walking around in our streets.

You know, as we move forward, new technologies will continue to be widely adopted, and it is highly likely that NVIDIA will always be at the center of this. It's important to remember this part. The news I want to share today is that Volvo Cars has announced that it will use NVIDIA's Drive Orin system in all of its future models. Let's read the details together. Volvo Cars has stated that it will adopt a single software system powered by NVIDIA's powerful chips for all future models. They also announced that they would reduce the costs of electric vehicles through mega casting. On Thursday, the Swedish automotive brand Volvo, owned by the Chinese company Geely Holding Group, revealed that starting with its flagship electric model EX90, which is set to be delivered to customers next month, it will implement a unified technology stack across all its car models. This means that...

It can be understood that it will be operated with MBDI software. This was announced in a presentation ahead of the investor event held in Gothenburg. Volvo stated that the EX90 software system is supported by NVIDIA's Drive Orin system-on-chip, which is capable of more than 250 trillion operations per second. In a few years, it is expected to be replaced with a chip that can perform even more operations. They are sharing these specific plans. The MVD software will allow Volvo to build better safety systems and continuously refine the vehicles through wireless updates, according to Anders Warming, the Chief Engineering and Technology Officer, in a conversation with Reuters. Many major automotive manufacturers assert that the future of electric vehicles operated by software will provide opportunities to generate billions of dollars in additional revenue through subscription service sales.

However, Bell has announced that Volvo will not pursue such a business model. The understanding here is that Volvo's main goal is not to sell many subscription services. Instead, they aim to improve their cars and create more cohesive products. Therefore, they will utilize this to enhance the vehicle's product. This is what is currently being discussed. Bern also announced that Volvo plans to rely on mega casting, using Tesla's Giga Casting large press to create a large aluminum single component for the vehicle's underbody. By using these large single parts, they can replace many individual components that need to be welded together, thus reducing costs. This is a situation we are all familiar with. Tesla has been a pioneer in mega casting, and now General Motors, Nissan, and others are increasingly...

More automotive manufacturers are adopting these techniques, which is understandable. Now, let's take a moment to study what NVIDIA's Drive Orin is. I have organized some information on it. NVIDIA Drive is a system-on-chip specifically designed for autonomous vehicles and advanced driver-assistance systems, commonly referred to as ADAS. A system-on-chip combines GPU and software into a single system. 

First of all, the performance is incredible. Drive Orin provides 254 TOPS, which stands for trillions of operations per second. This chip is equipped with NVIDIA's next-generation GPU architecture and ARM's Cortex A78 AE CPU cores. It delivers over eight times the performance compared to NVIDIA's previous generation vehicle SOC, making it a system that offers very high speed.

It is understandable that the Drive Orion is designed to expand from Level 2 to fully autonomous Level 5 driving, which means its range of applications is very broad. This can be easily understood. Additionally, many electric vehicle manufacturers have already adopted this very popular system. If you take a look, you'll see that companies like Volvo, Li Auto, Zeekr, Xiaomi, and Mercedes-Benz are utilizing it, as well as Nio and WM Motor. Many companies are already using NVIDIA's Drive Orion. Furthermore, it's not just electric vehicles; various companies related to robo-taxis and autonomous driving are also using NVIDIA's Drive Orion. For instance, Amazon's Zooks is using it, as well as Didi, and lastly, Baidu is also utilizing NVIDIA's Drive Orion. A positive list has been discovered. One very encouraging aspect is that in the past...

If you look at the quarterly results released by NVIDIA, the revenues from automotive and embedded sectors are showing a very positive trend. In the last three to four quarters, things were not looking good. Before the fourth quarter, the growth was limited to just 4%, and then there was negative growth. However, the encouraging part is that in the last quarter, there was a recovery of 11.1%. In this earnings report, the automotive and embedded sectors have accelerated with a growth rate of 36.8%. If we look back a year, the growth was very strong. Therefore, once again, as we enter the era of electric vehicles, including autonomous driving and assistance systems, we can directly confirm that there will be significant contributions to revenues from the drive-all-in sector. Lastly, the prepared article is related to news about Zeta. Over the past year, the stock price has more than tripled.

Zeta's stock price fell by 2.7% yesterday, and it is showing an additional decline of over 4% even after the market closed. There was some bad news, which is the announcement of a capital increase. The article states that Zeta turned to a downward trend following the announcement of this capital increase. Let's take a moment to look at the details. Zeta announced on Wednesday that it has begun a public offering for 10,000 Class A common shares. The company stated that the funds raised through this offering will be used for general corporate purposes, including potential acquisitions. Additionally, it has been reported that Zeta will not receive any proceeds from the sale of shares by selling shareholders in this offering. Therefore, when it comes to a capital increase, it is likely to feel quite dreadful for Korean investors. Many might be disheartened, wondering why the stock they have invested in is going through a capital increase like this.

I think it will be appropriate to share my thoughts with you for a moment. The recent capital increase by Zeta Global Holdings may have a negative impact in the short term. However, it cannot be definitively labeled as bad news; I personally believe it is a strategic financial move with potential benefits and considerations. 

First, let me discuss what advantages this has. Zeta is expected to raise approximately $200 million in total proceeds through this public offering. With such a significant amount of capital, the company can secure resources for growth and expansion. Additionally, they announced that they will use the net proceeds for general corporate purposes, including potential future acquisitions. This indicates a high likelihood of acquiring suitable companies, thus providing the financial strength to pursue strategic opportunities.

This can be interpreted positively. Additionally, another point is that major acquirers such as Morgan Stanley, Goldman Sachs, and Bank of America are participating, which reflects the market's genuine interest in my outlook. Therefore, we can confirm that these are very reliable companies. However, despite this, a capital increase can have many negative effects. One of the most notable is the dilution effect. If 1 million new shares are issued, it will dilute the ownership stake of existing shareholders. This can negatively impact earnings per share in the short term, which is a representative negative effect. Let me explain briefly; if you go to the Zeta page and scroll down, you can directly check the number of shares currently issued. It shows here that there are a total of 29.95 million shares outstanding.

There are millions there. If you look at the number of new shares being issued now, it’s a whopping 11 million shares. If you calculate 11 million shares, that means a sudden 5% increase in the number of shares. This implies that the value of the shares I hold will drop by 5%. You can view it this way. Therefore, this is a significant issuance of new shares, and I think this part should be interpreted negatively. 

Additionally, the earnings per share (EPS) will also be negatively affected. This means that the net income is not increasing, but the earnings per share (EPS) is the earnings per share ratio. Therefore, EPS is calculated by dividing the total net income by the number of shares. Since the number of shares has increased by 5%, there is a high possibility that EPS will decrease. We can calculate this part as well. 

The second negative aspect is market perception. A large issuance of shares can sometimes signal that the company might need capital, which could be interpreted negatively.

This raises questions about the financial soundness and growth prospects of the company. Therefore, it could lead to misunderstandings like, Isn't it currently in financial trouble? Now, if I go a bit deeper and show you the balance sheet, I think that would help. Currently, Zeta has cash amounting to 154.7 million, while its debt stands at 193.15 million. The level of debt is similar to the level of cash, which is a positive aspect. 

Furthermore, a more encouraging part is the total debt-to-equity ratio. This ratio shows the level of debt compared to the equity, which is essentially the money I own. The total debt-to-equity ratio is 88.9%. This means that if I have 1 million won of my own money, I have borrowed 889,000 won. This indicates that, considering the current level of debt, there is no need for excessive concern.

No, it can be organized like this. One more thing I would like to show you is the cash flow. Currently, the cash flow is positive. The cash flow from operations is 105.57 million, which is over 100 million dollars. Therefore, this company is not one that burns cash; rather, it is a strong company that continuously secures cash through its operations. We can confirm this once again. 

So, at the end, the execution risk is important. The success of this plan will depend on how effectively Zeta utilizes the capital it has raised. To summarize, there is a 5% dilution effect, which means shareholders are likely to have many complaints. They secured a lot of money, but the key question is how well they can acquire good companies and achieve growth with this money. This will determine their success or failure.

It seems like this will be a busy month. This concludes today's Big Tuesday News on September 5th. Thank you for joining us for today's broadcast. September is still quite volatile, and there is a long way to go. Everyone, stay strong, and I hope you can face this month with a more stable mindset. Let's all cheer each other on until the day we can all enjoy investing in U.S. stocks together. Have a happy day. Thank you.

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