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Nvidia faces a threat that isn't coming from AMD or custom silicon — it's coming from its own installed base. As Microsoft, Alphabet, and Meta extend server depreciation schedules out to five and a half to six years, the hyperscalers are in no rush to refresh hardware. That means Nvidia's next upgrade cycle competes directly against chips it already sold, compressing future demand in ways Wall Street hasn't fully priced in.
Shifting to retail, Flock Safety's license plate surveillance technology is drawing a consumer backlash that's now landing on the balance sheets of its corporate partners. Ulta Beauty and Lowe's are facing public pressure campaigns to drop their contracts with the firm, following municipal cancellations across the country. For retail names already navigating thin margins, reputational friction tied to surveillance partnerships is a risk category investors are just beginning to track.
And on the tax policy front, a new academic framework is challenging how economists think about capital gains versus wealth taxation. The key insight is that asset prices don't just move on cash flows — discount rate shifts matter too, and standard optimal tax models have largely ignored that distinction. The implications for how policymakers design capital taxation could be significant, particularly as Congress revisits the tax code heading into next year.
That's the tape. Markets Desk, signing off the floor.
