WSJ Tech News Briefing TNB Tech Minute: Pentagon Lifts Drone Restrictions, Shares of Defense Stocks Rise
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Jul 11, 2025 The Pentagon has lifted drone restrictions, causing a ripple effect in defense tech stocks. Meanwhile, Nintendo faces supply chain vulnerabilities due to its reliance on Chinese rare-earth magnets for the new Switch 2. Analysts are bullish on Microsoft's prospects, predicting continued growth in cloud computing and artificial intelligence as the company capitalizes on these emerging opportunities.
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Pentagon Removes Drone Restrictions to Boost U.S. Defense Tech
The Pentagon has lifted policies that previously slowed drone development and deployment, signaling a major push for U.S.-made drones in the defense sector. \n\nDefense Secretary Pete Hegseth's memo builds on President Trump's executive orders aimed at easing restrictions to help American drone companies better compete against Chinese counterparts. \n\nThe Department of Defense plans to equip combat units with a variety of low-cost drones developed by American engineers and AI experts, accelerating innovation and deployment in this critical area of defense technology.
Pentagon Lifts Drone Restrictions
- The Pentagon lifted policies restricting drone development and deployment to speed innovation.
- This move supports arming combat units with low-cost, AI-enhanced drones made by American engineers.
Nintendo's Switch 2 Supply Risks
- Nintendo's new Switch 2 uses rare-earth magnets mainly produced in China, exposing supply risks.
- To mitigate tariffs, Nintendo relocated some production to Vietnam, though new tariffs there may pose challenges.