AI Demand Bifurcation, EV Strategy Pivots, and Cooling Labor Market

Key Quotes

"I think the biggest news in terms of corporate news um was micron earnings rose 10 after its earnings and it's adding another 7 last time i checked this morning this took it to a new high it's now up about 217 year to date um strong results strong guidance um i think the biggest news in terms of of setting the stock much higher was the margins we're projected to reach historic highs for the company's demand for the products especially in the ai area um they're they're sold out through fiscal year 2026 for them this was the q1 for 2026 the quarter that just ended demand is outstripping supply so they were able to raise prices"

Brian Stewart highlights that Micron's stock surged significantly following its earnings report, driven by strong results and guidance. Stewart emphasizes that the projected historic highs in margins, fueled by AI-driven demand that outstrips supply through fiscal year 2026, were the primary catalyst for the stock's substantial increase.

"so they're moving away from some ev products but focusing on others they are pivoting away from the f 150 lightning trucks but they're moving towards down market and extended range and hybrid models so they're not giving up on evs completely they're just changing the mix that they're focusing on another interesting headline that was sort of buried in it is they are um launching a battery energy storage systems business basically providing power for um things like data centers and grid infrastructure um going after larger clients not not consumer business but more of a business to business model"

Brian Stewart explains that Ford's EV strategy involves a shift in focus rather than a complete abandonment of electric vehicles. Stewart notes that Ford is moving away from certain models like the F-150 Lightning but is increasing its emphasis on down-market, extended-range, and hybrid options. Stewart also points out Ford's new venture into battery energy storage systems for data centers and grid infrastructure, indicating a pivot towards business-to-business offerings.

"you see them talking more about um the ai chips that they've developed for their cars which could also theoretically be a product in itself you see them talking more about autonomous technology it's more than just sort of selling the the e part of it it's the entire package of the technology that goes into these vehicles"

The speaker explains that Rivian is positioning itself as more than just an electric vehicle company by emphasizing its technological advancements. The speaker notes that Rivian is highlighting its developed AI chips, which could potentially become standalone products, and its autonomous technology. This approach frames Rivian's offering as a comprehensive technology package rather than solely focusing on the electric powertrain.

"you you see a lot of the the upside for this being driven by robotaxi optimism -- so again tesla has always sold itself as more of a technology company and less of a a car company -- and you see that kind of hope getting priced back into the stock now that the distraction of doge is over"

The speaker discusses Tesla's recent stock performance, attributing its rise to optimism surrounding its robotaxi ventures. The speaker reiterates that Tesla has historically presented itself as a technology company rather than a traditional automaker. The speaker suggests that investor confidence and the stock's upward trend are being influenced by the belief that Elon Musk's return to full-time focus on Tesla, after stepping away from Doge, has removed a significant distraction.

"added 64 000 jobs in november which is pretty anemic but that was above the expectation of 40 000 jobs -- october was a decline 105 000 jobs lost in october but part of that there was 162 000 government employment reduction during that period of time so that was during the shutdown when you had and part of that was layoffs that were announced so a large chunk of the october decline was related to the government shutdown"

Brian Stewart reports on recent job data, noting that November added 64,000 jobs, which was below typical levels but exceeded expectations. Stewart clarifies that the October job figures showed a loss of 105,000 jobs, largely due to a significant reduction in government employment during the shutdown period. Stewart concludes that while the job market is anemic, it does not currently indicate a recession.

"on the good news front you had cpi come out showed annual growth rate in terms of inflation of 2 7 core cpi was 2 6 both of those were down from the previous month they had been hovering sort of around 3 for a while so if you want to you want to kind of take the bright side of that you see inflation starting to moderate a little bit from that 3 mark get a little bit closer to that 2 mark though there's still a lot of work to be done in that area"

Brian Stewart presents positive economic news regarding inflation, stating that the Consumer Price Index (CPI) showed a 2.7% annual growth rate, with core CPI at 2.6%. Stewart notes that both figures are down from the previous month, where inflation had been around 3%. Stewart suggests that this indicates inflation is beginning to moderate and move closer to the 2% target, though he acknowledges that further progress is still needed.