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- 📈 AMD vs. Nvidia: The $2.5B Battle for AI Drug Discovery
📈 AMD vs. Nvidia: The $2.5B Battle for AI Drug Discovery
Boston Scientific surges on $900M takeover of Bolt Medical, Constellation Energy to buy Calpine for $30B, Goodyear gets $701M for Dunlop, SPARC Groups merges with JCPenney, AMD's AI Drug Discovery Bet
Evelio Silvera
January 09, 2025
In partnership with
Good morning.
⚡ The Fast Five → Boston Scientific surges on $900M takeover of Bolt Medical, Constellation Energy to buy Calpine for $30B, Goodyear gets $701M for Dunlop, SPARC Groups merges with JCPenney, AMD's AI Drug Discovery Bet
🔎 Market Trends → Wall Street sees little changed as investors assess inflation path; US Futures Dip as Fed Signals Caution on Policy Easing
And now…
⏱️ Your 5-minute briefing for Thursday, January 9, 2024:
MARKET BRIEF
Before the Open
As of market close 01/08/2024.
Pre-Market
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Fear & Greed
Markets in Review
Fed Signals Pause, Markets React Cautiously
The Dow gained 0.3% to 42,635.2, and the S&P 500 edged up 0.2% to 5,918.3. The Nasdaq slipped 0.1% to 19,478.9, with health care and materials leading gains while communication services lagged.
The Big Picture:
Markets closed mixed as investors digested Fed meeting minutes, which highlighted cautious optimism but flagged upside risks to inflation due to policy and price dynamics. The FOMC’s December rate cut marked a deliberate approach to monetary easing, and markets broadly expect no changes in January.
While private job growth came in below expectations, disinflationary progress appears to have stalled, according to Fed Governor Christopher Waller. Even so, Waller expressed confidence that inflation would hit the 2% target over the medium term.
Oil fell 1.2% to $73.33/barrel, reflecting weaker-than-expected inventory declines. Gold rose 0.6% to $2,680.20/oz, and silver increased 0.3%, signaling ongoing demand for inflation hedges.
Market Movers:
eBay (EBAY): Surged +9.9%, leading the S&P 500, on news of its integration with Facebook Marketplace in the US and Europe, boosting its e-commerce reach.
Boston Scientific (BSX): Gained +4.3% after announcing plans to acquire Bolt Medical, enhancing its footprint in minimally invasive technology.
Meta Platforms (META): Fell -1.2%, reflecting concerns over execution risks tied to its eBay partnership.
What They’re Saying:
"The Fed is treading carefully, balancing disinflationary progress with persistent risks, while labor market data and private spending remain supportive of growth," noted BMO Capital Markets.
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: Infosys Limited, PriceSmart, Comtech Telecommunications
Tomorrow: Wells Fargo, Constellation Brands, Delta Air Lines, Walgreens, WD-40, Tilray Brands
MARKET BRIEF
Leading News
AMD's $20M AI Drug Discovery Bet Signals New Battlefront with Nvidia
Why it matters:
The chip giant's strategic investment in Absci (ABSI) marks its first healthcare play, positioning AMD to capture a slice of the $2.5 billion AI-powered drug discovery market — while challenging Nvidia's dominance in this lucrative space.
Zoom Out:
The traditional drug development gauntlet — with its 90% failure rate and decade-plus timeline — is ripe for AI disruption. AMD's Lisa Su is making a calculated move to transform this painfully inefficient process, much like how software transformed stock trading in the '90s.
This isn't just another AI headline. It's a peek into how the semiconductor wars are spreading into healthcare, where success could mean reshaping a trillion-dollar industry. Think of it as the silicon equivalent of the 19th-century railroad companies expanding into oil and steel.
Key Insights:
The Economics Stack Up: Traditional drug development costs about $2.5 billion per successful drug. Absci claims its AI approach can slash development time to just six weeks for initial candidates — a value proposition that could make AMD's $20M investment look like picking up Manhattan for beads.
Follow the Money Trail: Nvidia (NVDA) has already planted its flag with Amgen (AMGN) and Recursion (RXRX). AMD's entry suggests the market opportunity is even bigger than bulls thought. The same day, Novo Nordisk expanded its AI drug development deal to $4.6 billion — not exactly pocket change.
The Tech Edge: AMD's chips and software could give Absci a meaningful cost advantage, potentially creating a virtuous cycle: better infrastructure → faster innovation → more drug candidates → more data → better AI models.
Market Pulse:
"The barrier to entry in AI drug discovery isn't just computing power — it's the marriage of wet lab validation with digital simulation," notes Absci CEO Sean McClain. "We're building that bridge."
Bull’s Take:
For investors, AMD's move represents a clever backdoor play into biotech's AI revolution. While the immediate impact on AMD's bottom line may be modest, the long-term optionality could be substantial. Think of it as buying a call option on the future of medicine.
Headlines
US oil imports from Canada hit record ahead of tariff threat, EIA data shows (link)
Dunlop Brand Changes Hands: Goodyear Strikes $701 Million Deal with Sumitomo To Power Forward Plan (link)
Boston Scientific Surges On $900 Million Takeover Of Bolt Medical (link)
Constellation Energy in talks to buy Calpine in near-$30bn US power sector deal (link)
SPARC Group Has Merged With JCPenney to Form Catalyst Brands (link)
Billionaire Leon Black in talks to lead acquisition of the Telegraph (link)
CRYPTO
Fear & Greed
Headlines
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On the Socials
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