SNDL Inc. (SNDL) stock is soaring 5.45% in intraday trading on Wednesday, as cannabis-linked companies experience a significant boost following reports that US President Donald Trump is considering reclassifying marijuana as a less dangerous drug.

The potential reclassification of cannabis has ignited investor enthusiasm across the sector. While SNDL saw a 5.45% increase, other major players in the industry also witnessed notable gains. Tilray jumped 16%, Canopy Growth rose 4%, and Aurora Cannabis climbed 2%. This sector-wide rally underscores the potential impact of regulatory changes on cannabis-related stocks.

The surge comes after The Wall Street Journal reported that Trump discussed cannabis reclassification during a recent fundraising event. Currently classified as a Schedule 1 drug alongside substances like heroin and LSD, cannabis could be reclassified to Schedule III, putting it on par with medications like Adderall. Analysts suggest that such a move could have far-reaching implications for the industry, potentially bolstering research, reducing stigma, improving access to capital, and expanding the addressable market. However, investors should note that rescheduling is separate from federal legalization, and the immediate impact may vary for companies without US operations.