Summary

• Micron Technology, Inc. and Nvidia Corporation are poised to benefit from the Trump-Xi summit, which targets improved U.S.-China tech relations and supply chain security.
• The talks will focus on resolving supply chain bottlenecks, securing market access, and finding consensus on geopolitical divergences & AI, but the stakes for Micron & Nvidia couldn't be higher.
• Nvidia could see a $2-5B quarterly revenue boost if U.S.-China tensions ease, potentially lifting its valuations multiple from currently depressed levels.
• Micron seeks to resolve regulatory hurdles and lift the China server memory ban, which could revive its flailing China revenues and support further growth.
• I reiterate a bullish rating on both Nvidia and Micron, citing structurally strong demand and anticipated positive outcomes from the summit.

Investment Thesis

President Trump is expected to land in Beijing, China today and will be leading his high-profile delegation of some of America’s top CEOs into the highly anticipated Trump-Xi summit tomorrow.

The main goal

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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