Nvidia, AMD, Micron Stock Moves & Cannabis Reclassification News

Nvidia and AMD: Navigating US-China Chip Regulations

• ⚠️ Nvidia and AMD are adjusting to a new agreement requiring them to pay 15% of Chinese AI chip sales revenue to the US government for export licenses.
• 💡 This deal is seen as a mixed bag, better than an outright ban but capping potential revenue gains and raising concerns on Wall Street about the precedent.
• 🎯 China accounts for approximately 13% of Nvidia's total sales and 24% of AMD's, with potential revenue impacts ranging from 3-5 billion for AMD and 5-7 billion for Nvidia, though near-term generation remains uncertain.
• 📈 Analysts suggest Beijing may not welcome this "chip tax," despite its previous hostility towards Chinese firms deploying Nvidia's H20 chip.

Micron's AI Chip Demand Surge

• 🚀 Micron Technology shares rose about 4% after raising its fiscal fourth-quarter revenue and earnings outlook.
• ⚡ This positive revision is attributed to improved pricing for its high bandwidth memory, a key component in AI computing, driven by robust demand and constrained supply.
• ✅ This outlook provides relief to investors, especially after Micron's disappointing outlook in June.

Tilray Brands and Cannabis Stocks Rally

• 📈 Tilray Brands (TLRY) and its peers like Cronos Group and Canopy Growth saw significant gains, with TLRY up around 21%.
• 📰 The rally is fueled by a Wall Street Journal report indicating President Trump is considering reclassifying marijuana as a less dangerous drug.
• 🔑 A reclassification to a Schedule III drug would significantly reduce restrictions for cannabis companies, a major milestone they have been lobbying for, though it would not make marijuana fully legal at the federal level.