Memory Chip Maker Micron Unveils Plans for $10 Billion Research Lab in Idaho

The SEC is investigating the near-collapse of AI-focused hedge fund Situational Awareness, subpoenaing major banks for trade and leverage details. The fund, founded in 2024, managed $30B and returned 1,000% before a July crash. Its concentrated bets on Micron and SanDisk triggered margin calls, leading to a fire sale to Citadel. Citadel unwound 80% of the acquired risk, boosting its flagship fund's performance. The fund retains a stake in Anthropic, potentially valued at $2T.

Samsung Electronics approved a 90-110 trillion won shareholder return plan for 2026, the largest in Korean history, but shares fell 8.7% as investors expected more. U.S. memory stocks like Micron, Seagate, and SK Hynix also dropped. The payout was seen as disappointing due to its structure and deferred details. Sandisk's revenue growth slowed, reflecting broader sector doubts about AI demand.

The SEC has subpoenaed Bank of America, Citi, Goldman Sachs, and JPMorgan Chase as part of an investigation into the near-collapse of AI-focused hedge fund Situational Awareness, which saw a 67% portfolio wipeout in July. The inquiry focuses on the fund's trading timing, leverage, and communications with lenders. Situational Awareness, founded in 2024, had managed over $30 billion and held significant stakes in SanDisk and Micron, which experienced sharp declines in July. The fund's liquidation

Micron Technology (MU) reported a 4x revenue increase to $41.5B in Q3, with net income at $28.2B. CEO Sanjay Mehrotra highlighted $22B in customer deposits and 16 strategic agreements, with data centers demanding 50% more memory than Micron can supply. Contracts include take-or-pay terms, with price floors and ceilings, aiming to mitigate cyclical downturns. Micron expects supply tightness until 2028, with new factories coming online later. The stock has tripled in 2026, trading at 22x earnings.

Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) dropped 8% today. The decline follows a 32% rise in early August. The fall is attributed to U.S. allowing Apple to source memory chips from Chinese firms CXMT and YMTC, threatening U.S. competitors Micron and Sandisk. Micron, SOXL's largest holding at 8.6%, fell 5%.

Memory stocks fell Monday after reports that Apple may source chips from Chinese suppliers. SanDisk (SNDK) dropped 9%, Micron (MU) 7%, and Western Digital (WDC) 7%. The Roundhill Memory ETF (DRAM) also fell 7%. Analysts debate the impact, with some calling the selloff an overreaction.