Micron's Record Quarter Signals AI Memory Boom

Micron Technology (MU) delivered a strong earnings report with record revenues of $11.32 billion, driven by High Bandwidth Memory (HBM) sales that the company reports are sold out through 2026. The company's HBM revenue reached "multiple hundred millions of dollars" in a single quarter, with six major customers reportedly locked into pricing agreements for 2026. This could potentially create enhanced revenue visibility in a sector known for cyclical volatility.

The HBM market is projected by some analysts to grow substantially from current levels, potentially reaching $35 billion in the coming years, with Micron and SK Hynix (SK) holding significant market share that supplies Nvidia's (NVDA) growing demand for AI memory. With Micron guiding Q1 2026 revenue to $12.5 billion—representing approximately 43.5% year-over-year growth—the memory market appears to remain tight.

Government Takes Unprecedented Lithium Stake

Meanwhile, reports of the Trump administration's pursuit of a potential 10% equity stake in Lithium Americas (LAC) sent the stock soaring 95% to over $6, following similar government investments in MP Materials (MP) that have seen significant gains. This appears to be part of a broader government approach to securing critical minerals as strategic assets. General Motors' existing 38% stake in LAC's Thacker Pass project, which could potentially become one of North America's largest lithium sources by 2028, underscores the project's perceived importance.

The implications may extend beyond lithium. China is widely reported to control approximately 65% of global lithium refining capacity despite being only the third-largest producer. Addressing this imbalance could require the type of direct investment currently being discussed. Investors might consider monitoring uranium and rare earth miners as potential candidates for similar government interest.

Intel Attracts Strategic Interest

Intel's (INTC) 6% surge on reports of potential Apple investment talks adds another dimension to this story. Trading at approximately 2.4 times sales—near decade-low valuations according to market data—Intel represents one of America's primary alternatives to Taiwan's TSMC for domestic chip production. Apple's reported interest, combined with ongoing government partnership discussions that have contributed to stock gains of approximately 25%, suggests increased interest in domestic manufacturing capacity.

Tesla's Robotics Ambitions Take Center Stage

The strategic context becomes clearer when considering Tesla's proposed compensation package that could potentially grant Elon Musk 423.7 million shares if the company reaches an $8.5 trillion valuation. While the target appears ambitious, Tesla's planned October 23rd Optimus robot production announcement could represent what some analysts describe as a potential "ChatGPT moment for robotics."

The economics being discussed include projections of robots potentially working extended hours at lower costs, which could help address labor challenges, while the robotics market is projected by some sources to grow from current levels toward significantly higher unit volumes over time. Musk's reported $1 billion personal investment in Tesla stock suggests his confidence in the company's direction.