🍋 GPU Gladiators

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Good Morning! It seems like Americans are rolling into the summer with some price relief. Last month inflation eased to 4%, marking the slowest pace in two years. And renters are about to regain the upper hand in the market, with new-lease rents set to fall for one of the first times since 2008. And even egg prices are taking a plunge, experiencing the largest monthly decline in 72 years.

Private equity investors are feeling optimistic, with 71% of LPs expecting a strong fundraising year in 2024. And Netflix is stepping onto the green and planning its inaugural celebrity golf tournament this fall.

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1. Story of the Day: GPU Gladiators

The AI arms race just got even more intense, with a new player stepping into the game yesterday. AMD, one of Nvidia’s largest rivals, surprised investors and analysts by announcing plans to ship its most advanced GPUs to customers this year.

GPUs are the lifeblood of the AI revolution - these computer chips are what power AI programs like ChatGPT. But until now, the competition has been somewhat limited. Nvidia has held a stranglehold on the GPU market, boasting an 80% market share.

But AMD wants to change that. The company is known for its traditional computer processors. But AMD made a powerful statement to investors yesterday - they’re going all-in on AI. With the AI data center market projected to grow at a 50% CAGR to exceed over $150 billion in 2027, AMD sees immense potential.

AMD could have big implications for the GPU landscape. With Nvidia’s GPUs often priced at well over $30k, the pressure from AMD’s entry could drive prices down, making high-performance AI applications more accessible.

Takeaway: Everyone was feeling bleak about the economy heading into 2023. And then the AI revolution took the market by storm. The anticipation is real, and for good reason - Goldman thinks generative AI could add $7 trillion to the global economy. Companies like AMD are moving fast, and the landscape is evolving faster than anyone would have thought.

2. Markets Rundown

Stocks closed higher on positive inflation data.

Movers & Shakers

• (+) Norwegian Cruise Line ($NCLH) +6% after Bank of America raised its price target.

• (+) Urban Outfitters ($URBN) +4% after the company's stock was upgraded by Morgan Stanley.

• (–) Biogen ($BIIB) -3% after the company revamped its board of directors.

Private Dealmaking

• Blunge bought Viterra, a Dutch agribusiness, for $8.2 billion

• Novartis bought Chinook Therapeutics, a biotech firm, for $3.5 billion 

• Glenwood Private Equity bought SK Pucore, an eco-friendly polyurethane materials manufacturer, raised $390 million

• Synthesia, an AI video creation platform, raised $90 million

• Percepto, an autonomous inspection provider, raised $67 million

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3. Top Reads

• Goldman Sachs is at war with itself (WSJ)

• Does a recession in Europe hurt the US? (CNN)

• HSBC builds innovation unit from bones of collapsed SVB UK (CNBC)

• Is the Great Resignation over? (CNN)

• For some companies, debt downgrades followed payouts to private equity owners (WSJ)

• Tesla set for AWS moment as Elon Musk urges rivals to access its charging stations (Fortune)

• Treasury yields climb after CPI report shows slowing inflation ahead of Fed decision (CNBC)

• Accenture makes a $3 billion bet on AI (NYT)

• Young Americans twice as likely to use AI for financial advice (YF)

• The chatbot comes to the drive-through (WSJ)

4. Book of the Day: The Art of Making Sh!t Up

The Art of Making Sh!t Up combines the lessons learned from a personal journey with the teachings derived from years of honing valuable skills through performing and presenting to thousands of people to demonstrate how working together has helped others found and grow several multimillion-dollar companies.

By focusing on topics that serve as pain points and detailing the tools and techniques of improv, this book helps people and organizations utilize new skill sets to be more productive, more accepting, and more "all in" to create a stronger teammate and team.

· Remove the fear of failure

· Recognize when and how to trust your instincts

· Celebrate and embrace the ideas of others

· Listen effectively―to both people and your environment

Thinking is hard. Listening is easy―and is most often the springboard to huge ideas. Find out how it can work for you with The Art of Making Sh!t Up.

“Work together to up your chances of business success.”

5. Short Squeez Picks

• What your barista is really thinking when you’re about to tip

• Know the science of first impressions to increase popularity

• 17 ways people with high emotional intelligence are already using AI

• How far back should a resume go?

• How quitting can be your competitive advantage

6. Daily Visual: Apple Stock Can’t Stop, Won’t Stop

_{Source: Axios}

7. Daily Acumen

“Big ambitions, low expectations, and high standards are a powerful combination for living your best life.

Ambitions pull you forward when it's hard. They connect you to something larger. One of my most important ambitions is to be a great father and friend. Another is to leave the world a better place than I found it. You can't have a meaningful life without a connection to something larger than yourself.

Reality minus expectations = happiness. You will never be happy unless your expectations are exceeded. If you think the world owes you something, you're going to end up disappointed.

The world doesn't owe you anything. You can't sit around waiting for the world to come and hand you what you think you deserve. If you want something to happen, you have to take action. Go positive and go first.

High standards - When it gets hard, do not lower your standards. I am not always at my best, but I always give my best. I hold myself to a high bar. I don't always meet it, but I won't lower the bar to feel better about myself.”

Source: Farnam Street

8. Memes of the Day

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