Tesla earnings strength and compressed valuation signal accumulation

October's Consumer Price Index (CPI) rose 0.4% month-over-month, compared to a market forecast of 0.3%, with the previous value at 0.6%; October's core CPI (excluding food and energy) rose 0.3% month-over-month, against a forecast of 0.2%, with the previous value at 0.3%. Federal Reserve Governor Waller stated that if core CPI rises by 0.3% or more, the Fed may need to raise interest rates by 50 basis points, while a 25-basis-point hike is all but certain. So, the US stock market crashed. Saying it "crashed" might be an exaggeration; compared to the A-share market, one could only say it experienced a minor adjustment of 0.7%. Nvidia fell more, down 5.53%, marking a 30% retracement from its recent highs. This decline seems largely complete. Regarding issues surrounding Jensen Huang, even in China they are not considered problematic, let alone in the US. The only current issue involves Democrats deliberately alleging that his wife is a Chinese spy, which should be dismissed as baseless rumor. After this downturn, Tesla's profitability has become even stronger, and its valuation is now significantly lower. It is highly likely to be snapped up again soon; these concerns are mostly just emotional reactions. The semiconductor sector has hardly declined at all. In memory chips, there are some minor divergences: SK Hynix fell 3.5%, SanDisk dropped 3%, and Micron fell 1%. New energy and photovoltaic sectors also saw considerable declines, suggesting they may be losing momentum. Looking ahead, the focus remains on AI agents and physical AI. For overseas supply chains, such as optical modules, if prices drop further today, it should be viewed as a divergence opportunity offering extreme cost-effectiveness, particularly in high-bandwidth optical solutions.