Core Insights - Majestic Labs, co-founded by former Meta and Google executives, has raised $100 million to develop technology aimed at reducing cloud companies' data center costs [1][2] - The startup's innovative silicon design architecture boasts 1,000 times the memory of typical enterprise-grade servers, potentially allowing one server to replace up to 10 conventional racks [2][7] - The company recently closed a $71 million Series A funding round, led by Bow Wave Capital, with additional investment from Lux Capital [3] Company Overview - Majestic Labs is focused on addressing memory capacity challenges in AI workloads, targeting hyperscalers and large enterprises in sectors like finance and pharmaceuticals [6][7] - The startup plans to release prototypes of its box servers by 2027 and is already discussing pre-orders with potential clients [8] - The company currently employs fewer than 50 people, with plans for growth and additional funding in the coming year [8][14] Industry Context - Major tech companies, including Alphabet, Meta, Microsoft, and Amazon, are increasing their capital expenditures for data center infrastructure, collectively expected to exceed $380 billion this year [4] - The reliance on Nvidia's GPUs for AI workloads is shifting, with new entrants like Google introducing their own tensor processing units (TPUs) [5][6] - The demand for AI technology is surging, prompting the co-founders of Majestic Labs to leverage their extensive experience in silicon and AI to address industry bottlenecks [9][13]

Tourists walk past the U.S. Capitol more than a month into the continuing U.S. government shutdown in Washington, D.C., U.S., Nov. 7, 2025. Nathan Howard | ReutersThis is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Here are five key things investors need to know to start the trading day:1. Light at the end of the tunnel?All eyes were on Capitol Hill last night when the Senate approved the first step of a deal that could end the federal government shutdown. Effec ...

Core Insights - Instacart's stock increased over 8% following strong third-quarter earnings and positive guidance under new CEO Chris Rogers [1][2] - The company reported a 10% revenue growth, reaching $939 million, and gross transaction value also rose 10% to $9.17 billion, exceeding estimates [1][4] Financial Performance - Revenue for the third quarter was $939 million, surpassing the expected $934 million [4] - Earnings per share were adjusted to 51 cents, compared to the expected 49 cents [4] - Gross transaction value increased to $9.17 billion from $8.3 billion in the previous year, exceeding the $9.11 billion estimate [1] Future Outlook - For the current quarter, Instacart forecasts gross transaction value between $9.45 billion and $9.6 billion, indicating a year-over-year growth of 9% to 11% [3] - The midpoint of the forecasted gross transaction value surpasses the $9.48 billion estimate by FactSet [3] - The company anticipates EBITDA in the range of $285 million to $295 million [3] Strategic Focus - CEO Chris Rogers emphasized the company's leadership in online grocery delivery and plans to invest in customer and retailer relationships, advertising ecosystem, and AI-powered tools [2]

Core Insights - A significant influx of Japanese capital is being directed towards European tech startups, particularly in the deep tech sector, as Japanese investors seek a more mature entrepreneurial environment [1][9] - Since the EU-Japan Economic Partnership Agreement in 2019, Japanese investors have participated in over 33 billion euros ($38 billion) in European financing rounds, a stark increase from 5.3 billion euros in the five years prior [2][3] Investment Trends - Japanese venture capital firms, including NordicNinja, are increasingly backing European startups, with a focus on deep tech and artificial intelligence, which accounted for 70% of their deals in 2024 [9][10] - The top-funded companies with Japanese participation include Wayve, Quantinuum, and Multiverse Computing, which raised significant amounts in recent funding rounds [10] Market Dynamics - There are more VC-backed startups in Europe than in Japan, with a ratio of over two times per capita and 4.3 times more unicorns [5] - Japanese firms are leveraging their extensive manufacturing and industrial expertise to fill gaps in Europe’s scaling capabilities, particularly in sectors like energy and critical minerals [12][14] Cultural and Operational Considerations - Language barriers and cultural differences pose challenges for collaboration between Japanese and European firms, affecting decision-making processes and partnership dynamics [16][17][18] - Japanese investors tend to have a slower decision-making pace due to thorough research and preparation, contrasting with the more rapid approaches seen in other regions [18][21] Future Outlook - Expectations indicate that Japanese investors will participate in rounds worth 3 billion euros in 2025, a decrease from previous years, amidst shifting investment interests towards the Middle East [23][24] - Political motivations in Japan are driving a strategic push for greater collaboration with Europe, aiming to enhance the geopolitical positioning of Japanese corporates [25]

Market Performance - The S&P 500 and Dow Jones Industrial Average each lost more than 1%, while the Nasdaq Composite shed around 3%, marking its largest weekly loss since a 10% decline in early April [2] - November is historically the best month for the S&P 500, with an average gain of 1.8% [1] Investor Sentiment - Concerns are rising regarding the high valuations of artificial intelligence-related stocks, which are perceived to be trading at prices disconnected from their actual worth [2] - There is a significant concentration of investment in a few stocks, leading to worries about a potential market bubble [3] Market Outlook - Goldman Sachs' CEO predicts a potential 10 to 20% drawdown in equity markets within the next 12 to 24 months, although such a pullback could present buying opportunities for investors [4] - Despite concerns over tech stock valuations, earnings have been described as "reassuring," suggesting that the current market downturn may not last long [5]

Group 1: Government Shutdown Impact - The ongoing government shutdown is affecting investor sentiment, particularly in economically sensitive sectors, with retail stocks down over 7% since October 1 and food-and-beverage ETFs down more than 5% [1] - Historical patterns suggest that disruptions in air travel due to the shutdown may increase the likelihood of a resolution, as seen in previous shutdowns [1] - The lack of government economic data due to the shutdown is contributing to negative consumer sentiment, with JPMorgan's chief global strategist noting that the economy is slowing down but not in recession [1] Group 2: Cisco Earnings Outlook - Cisco Systems is expected to report fiscal 2026 first-quarter earnings with a consensus EPS of 98 cents and revenues of $14.77 billion [1] - Analysts at Morgan Stanley anticipate a revenue beat but caution that guidance may be soft due to the government shutdown and high component costs [1] - Cisco's AI orders exceeded $800 million in fiscal 2025 Q4, indicating strong demand in the data center space, which could support stock performance despite concerns about an AI bubble [1] Group 3: Disney Earnings Expectations - Disney is set to report fiscal 2025 fourth-quarter results, with analysts expecting EPS of $1.05 on revenue of $22.75 billion [2] - The performance of Disney's streaming business, particularly the new ESPN streaming service, will be closely monitored, especially in light of potential subscriber churn related to recent controversies [1][2] - Concerns about the health of the U.S. consumer may impact Disney's theme park and cruise ship bookings, which will be a key discussion point during the earnings call [1][2]

Core Viewpoint - The market is currently focused on high valuations for AI stocks, with concerns about a potential AI bubble affecting investor sentiment, yet many tech stocks are still seen as having strong fundamentals and rapid AI-induced growth justifying their high valuations [1] Group 1: Amazon (AMZN) - Amazon reported impressive Q3 results, with significant growth in its AWS cloud unit, reinforcing investor confidence in its AI expansion [3] - Mizuho analyst Lloyd Walmsley raised his price target for Amazon to $315 from $300, maintaining a buy rating, citing the Q3 performance and a deal with OpenAI as key factors [4] - Walmsley expects AWS revenue growth to accelerate from 20% in Q3 to 21% in Q4 2025 and 22% in Q1 2026, projecting AWS revenue to reach $157 billion in 2026 and $192 billion in 2027, exceeding market expectations [5][6] Group 2: Alphabet (GOOGL) - Alphabet reported better-than-expected Q3 results, with AI driving momentum in its cloud business, leading JPMorgan analyst Doug Anmuth to raise his price target to $340 from $300 [8] - Q3 marked the first time Alphabet's quarterly revenue exceeded $100 billion, with double-digit growth across all major business segments [9] - Anmuth noted that AI search features are improving conversion rates, and he is optimistic about Alphabet's prospects, ranking it as JPMorgan's second top idea after Amazon [10][12] Group 3: Advanced Micro Devices (AMD) - AMD delivered strong Q3 results, attributing growth to its expanding compute business and AI data center segment, prompting Stifel analyst Ruben Roy to raise his price target to $280 from $240 [13] - Roy expects Q4 revenue to grow 25% year-over-year to $9.6 billion, driven by data center and client businesses, despite a decline in the gaming segment [14] - The analyst anticipates AMD's data center AI GPU business to increase to $6 billion to $6.5 billion in FY25, up from a previous estimate of $5 billion, and is optimistic about recent deals with OpenAI and Oracle Cloud Infrastructure [15][17]

Core Insights - The Web Summit conference in Lisbon, known as the "Davos for geeks," will feature major tech leaders and is expected to attract over 70,000 attendees [2] - The event occurs amid scrutiny of the AI market rally, with concerns about potential bubbles affecting investor sentiment [3] - AI remains the dominant topic at the conference, with multiple panels focused on its impact and future, despite recent market volatility [4] Industry Overview - The Web Summit will host prominent figures from companies like Meta, Qualcomm, and Microsoft, indicating a strong representation of major tech players [1] - The AI sector is under increased scrutiny, particularly after significant bets against leading AI companies like Nvidia and Palantir, which has contributed to market fluctuations [3] - The event's agenda reflects a continued optimism in AI, with no discussions on potential overvaluation or market bubbles [4] Operational Challenges - Attendees are facing logistical issues due to a private jet logjam at Lisbon airport, with some flights redirected to airports over two hours away [6]

Core Insights - JPMorgan Chase CEO Jamie Dimon emphasizes the importance of focus and minimizing distractions at work, particularly regarding phone usage and meeting etiquette [1][2][3] Group 1: Phone Habits - Dimon does not read text messages during work hours and keeps his phone notifications turned off, only receiving notifications from his children [1] - He does not carry his phone while walking around the office or during meetings, which allows him to maintain deep focus [2] Group 2: Meeting Etiquette - Dimon criticizes poor meeting etiquette, stating that using phones during meetings is "disrespectful" and "wastes time" [2] - He believes that meetings should have a clear purpose and that distractions such as checking emails are detrimental to productivity [3]

Core Insights - Deflation pressures in China eased in October as consumer prices returned to growth after two months of decline, while producer prices continued to fall for three consecutive years due to weak domestic demand and declining exports [1][2][3] Consumer Prices - The consumer price index (CPI) for October was reported at 0.2%, surpassing analysts' expectations of flat growth, following a 0.3% decline in September [2] - Month-on-month, consumer prices also increased by 0.2%, again exceeding expectations of no growth [2] Producer Prices - Producer prices fell by 2.1% year-on-year in October, slightly better than the expected 2.2% decline, marking three years of negative growth [3] - Month-on-month, producer prices saw a marginal increase of 0.1% [3] Economic Policies and Domestic Demand - Policies aimed at expanding domestic demand have started to show positive effects, aided by the National Day and Mid-Autumn Festival holidays [4] - Industrial profits in September rose over 21%, indicating some success in curbing price wars and stimulating demand [5] Manufacturing Activity - Manufacturing activity in October contracted more than anticipated, reaching its lowest level in six months, with significant declines in production, new orders, raw material inventory, and employment [6] Export Challenges - Trade tensions with the U.S. and weak domestic consumer confidence have created demand uncertainty for Chinese producers, with exports unexpectedly contracting in October [7] - Shipments to the U.S. experienced a 25% decline, marking the seventh consecutive month of double-digit decreases [7] Future Outlook - A potential easing of export challenges may arise from a trade truce agreed upon by U.S. President Donald Trump and Chinese President Xi Jinping [8] - China's leadership emphasized the need to boost domestic consumption while balancing it with effective investment strategies [9]