Tobias

Majestic Labs, founded by ex-Meta and Google silicon executives, secured $100M to disrupt cloud computing. Their novel chip design architecture boasts 1000x the memory of typical servers, potentially replacing ten racks with one and significantly reducing data center costs. Targeting hyperscalers and enterprises deploying AI, their technology consolidates server functionality, cutting power consumption and improving energy efficiency. Prototypes are expected in 2027. The founders aim to solve memory bottleneck issues for AI workloads.

The possibility of including cryptocurrency assets in mortgage risk assessments is gaining traction in the US. While potentially expanding access to homeownership, the move faces scrutiny due to crypto’s volatility. The Federal Housing Finance Agency (FHFA) is exploring the feasibility of incorporating crypto assets into risk assessments, drawing both excitement and concerns. Critics, including Democratic senators, emphasize the need for caution and transparency in evaluating the potential risks to financial stability and the housing market. Robust evaluation methodologies are crucial for this evolving landscape.

This week’s portfolio adjustments involve a partial sale of Cisco (CSCO) due to security revenue concerns, despite long-term AI optimism. Proceeds are strategically reinvested into Corning (GLW) and Meta Platforms (META). Corning is expected to benefit from growing demand for fiber optic solutions driven by AI data center infrastructure. Meta is seen as undervalued after a recent pullback, presenting an attractive entry point based on its AI potential and monetization capabilities.. These moves aim to balance risk and capitalize on long-term growth trends in AI and data infrastructure.

Instacart (CART) reported strong Q3 results, exceeding expectations with adjusted EPS of 51 cents and revenue of $939 million, a 10% year-over-year increase. Gross Transaction Value (GTV) also rose by 10%. CEO Chris Rogers highlighted affordability and enterprise solutions as key strategies. Instacart projects continued growth in the current quarter with GTV between $9.45B-$9.6B and EBITDA of $285M-$295M. While facing competition from Amazon and DoorDash, Instacart is investing in AI and has authorized a $1.5 billion share buyback program.

PitchBook is enhancing its platform with AI-powered tools, including PitchBook Navigator, an AI assistant for natural language queries, and ChatGPT integration, to streamline access to private market data like valuations and deal terms. This advancement, driven by investor demand and recent private market valuations like OpenAI’s $500 billion, allows subscribers to extract market trends via AI-generated reports, reducing time spent on due diligence. Fueled by extensive data and AI/human curation, the update, set for late November, aims to democratize private market intelligence.

The US government shutdown, now the longest in history at 41 days, may be nearing its end. The Senate approved a procedural measure to fund the government until January, signaling bipartisan weariness. Stocks are recovering amid optimism, while PitchBook launched an AI tool for market analysis. MLB pitchers face indictment in a betting scheme. A survey reveals millionaires prioritize well-being over financial management, favoring personal trainers and therapists over wealth advisors.

Japanese investment in European tech startups is surging, driven by confidence in Europe’s mature ecosystem and a strategic shift away from Silicon Valley. Since 2019, investments have exceeded 33 billion euros, a significant increase compared to the preceding years. Japanese corporations are particularly interested in deep tech ventures, providing capital and expertise in manufacturing and supply chains. While challenges like language barriers exist, the trend reflects a broader geopolitical strategy and the appeal of European entrepreneurs with experience in multinational corporations.

November faced market headwinds despite its historical strength. The S&P 500, Dow, and Nasdaq all declined, with AI stock valuations under scrutiny. Concerns about a potential bubble are rising, echoed by DBS and Goldman Sachs. Conversely, analysts see market pullbacks as buying opportunities, while UBS notes reassuring earnings. China eased rare earth export restrictions and progressed on the Nexperia issue, and the U.S. government shutdown nears resolution. Finally, a global wealth boom is fueling a rise in family office imposters preying on investors.

China has eased export restrictions on critical minerals and rare earth elements, a move seen as a result of recent US-China talks. The one-year suspension, effective after October 9th, impacts materials used in military hardware, semiconductors, and advanced technology. This includes gallium, germanium, antimony, graphite and synthetic diamonds. The US has reciprocated by reducing tariffs and postponing the blacklisting of Chinese subsidiaries. Analysts believe China aims to stabilize its economy and project reliability in the global trading system.

Despite November’s historical strength for equities, the first trading week saw the S&P 500, Dow, and Nasdaq decline, with the Nasdaq experiencing its largest weekly loss since April. Market anxieties shifted to AI stock valuations and capital concentration in tech giants, sparking correction concerns. Goldman Sachs anticipates a potential equity market drawdown. However, pullbacks are also seen as potential buying opportunities. China’s CPI rose, and the US averted a government shutdown, though the shutdown delayed a crucial jobs report. Oversold stocks and family office imposters were also noted.