Company Performance - Micron Technology's stock fell 2.8% despite reporting better-than-expected profit and revenue, indicating high market expectations as the stock had already gained 97.7% year-to-date [3] - Freeport-McMoRan's stock dropped 17% after the company revised its copper sales forecast down by 4% and gold sales by approximately 6% for the third quarter [4] - Lithium Americas' stock surged 95.8% following reports of potential U.S. government ownership stake in the company, which is developing a lithium project in Nevada with General Motors [4][5] Industry Trends - U.S. stock indexes experienced a slight decline after a significant rally, raising concerns about stock prices becoming too high if the Federal Reserve does not meet rate cut expectations [2] - Homebuilders saw gains as U.S. new home sales in August exceeded economists' forecasts, with Lennar rising 2% and PulteGroup and D.R. Horton both increasing by 0.7% [6]

Core Viewpoint - Micron Technology's stock is considered a buy despite a recent 7% decline, as the company exceeded earnings expectations in its fiscal Q2 2025 report [1][4]. Financial Performance - Micron reported a revenue increase of 38% year over year, reaching over $8 billion, but experienced a sequential decline of 7.6% from Q1 [2]. - Non-GAAP earnings were $1.56 per share, surpassing analyst expectations, while GAAP earnings were $1.41 per share, nearly doubling from $0.71 a year ago [2]. - Operating cash flow more than tripled compared to the previous year [2]. Cash Flow and Guidance - The company's free cash flow remains slightly negative at $75 million, but is showing signs of improvement [3]. - CEO Sanjay Mehrotra anticipates record quarterly revenue in fiscal Q3, driven by growth in DRAM and NAND demand across data center and consumer markets [4]. Future Projections - Micron forecasts Q3 sales of approximately $8.8 billion, with non-GAAP profit expected at $1.57 per share and GAAP earnings at $1.37 per share [5]. - These projections indicate that Micron is on track to exceed earnings expectations for the fifth consecutive quarter [5]. Valuation Perspective - The stock is currently valued at only 15 times analyst forecasts for the year, suggesting it is undervalued given its performance [6].