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Amazon (AMZN) just handed Constellation (CEG) a 20-year vote of confidence. (00:15) Tencent (TCEHY) is reportedly leasing 100,000 AI chips from Oracle (ORCL). (01:16) Micron’s (MU) eye-popping results. (02:03)
This is an abridged transcript.
Constellation Energy (CEG) and Amazon (AMZN) have signed a 20-year power agreement.
The agreement will support more than $3 billion of investment in Constellation’s Calvert Cliffs nuclear plant in Maryland, including an expansion of the facility’s generating capacity.
The companies also entered into a retail electricity supply agreement covering Amazon operations in the 13-state PJM electricity market. Power generated at Calvert Cliffs will continue to flow into the regional grid rather than being delivered directly to Amazon facilities.
For investors, the agreement gives Constellation (CEG) a long-term customer commitment supporting capital investment and the continued operation of an existing nuclear asset at a time when electricity demand is rising, in part because of data-center expansion.
For Amazon (AMZN), the contract provides a long-term source of electricity for its regional operations while helping the company manage its exposure to power costs.
Tencent (TCEHY) has signed a five-year lease with Oracle (ORCL) for access to about 100,000 advanced AI chips.
According to the Financial Times report, the agreement covers multiple Oracle (ORCL) data centers in Southeast Asia and is estimated to be worth about $7B, with roughly 30% paid upfront.
The deal gives the company access to advanced chips that are not available in China.
Tencent (TCEHY) and Oracle (ORCL) did not immediately respond to Seeking Alpha’s request for comment.
Tencent (TCEHY) has been accelerating its AI infrastructure spending. Its capital expenditure jumped 176% Y/Y to 53B yuan, or about $7.9B, in Q2. For Oracle (ORCL), the deal helps with diversification of its AI customer base beyond OpenAI (OPENAI).
Now an update on Micron Technology (MU). MU was our main topic on Wednesday’s edition of Wall Street Lunch.
The memory giant reported fiscal fourth-quarter results and guidance after the bell Wednesday that topped Wall Street’s expectations by a wide margin.
For the period ending Sept. 3, Micron said it earned an adjusted $33.42 per share as revenue soared 379.1% year-over-year to $54.23B.
Analysts had expected the company to earn an adjusted $31.72 per share on $51.49B in revenue.
Revenue from its cloud memory business unit nearly doubled sequentially, coming in at $16.283B, up from $13.769B in the prior quarter.
Shares have jumped more than 237% year-to-date and more than 536% over the past 12 months.
Looking to the first-quarter of fiscal 2027, Micron said it expects adjusted earnings between $37.15 and $39.15 per share, above the $35.47 per share estimate. Sales are forecast to be between $60B and $63B, well above the $57.4B estimate.
And a trending search topic on Seeking Alpha, Trump ACA refund checks. You may remember that we gave you a heads up about this last month.
Nearly one million individuals who received health care coverage through Affordable Care Act exchange plans will receive a $500 refund due to “user fees” passed on to them through higher premiums.
According to the White House, the checks start going out this month.
The refunds will be provided to those who did not receive any federal subsidies and only in the 30 states where exchanges are run by the federal government.
Catalyst watch:
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The ticking fee on the Paramount Skydance (PSKY) purchase of Warner Bros. Discovery (WBD) begins. Every day until closing will add $7M to the final deal price.
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Corteva (CTVA) will officially spin off its seed and genetics business into a new company called Vylor. For every Corteva share held at the close of the September 24 record date, a shareholder is due one Vylor share. Corteva says the split will let each business set its own investment priorities and operating strategy.
Stock index futures are in mixed territory.
Crude oil is up 2.4% at $92. Brent crude is up 2.4% at $100.
The FTSE 100 is down 1.8% and the DAX is down 1.2%. China’s (SHCOMP) markets closed. Hong Kong (HSI) markets closed.
One stock on the biggest movers list: Alphabet (GOOG) (GOOGL) +4% – Shares edged higher after Google provided a first look at Gemini 4 Argon, its latest frontier AI model, which the company said surpassed competing models across benchmarks covering complex workflows, knowledge work, cyber defense, multimodal understanding, and software engineering.
Economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
