# AI Power Gets 20-Year Contracts While Chips Trade on Headlines *URL:* https://millionaur.com/millionaur-2026-10-07-daily-analysis/ *Updated:* 2026-10-07T05:52:32+00:00 **On Tuesday the S&P 500 closed above 7,800 for the first time, and the Nasdaq set another record.** Bond yields eased a little and oil fell after the G7 agreed to release 100 million barrels from reserves. Under that record, two very different things happened in the areas this portfolio cares about. ## The lesson: what gets a long contract Electricity for AI was priced for decades in one day: - Vistra (VST) rose about 9% after the US Department of Energy gave a conditional commitment of up to $4.2 billion to upgrade three of its nuclear plants. That adds 433 megawatts and extends the plants’ life by 20 years. - Constellation Energy (CEG) rose about 12% after agreeing to supply 890 megawatts of nuclear power to Google for 20 years. Every power line in the portfolio moved with them: uranium, grid equipment, turbines and utilities. Utilities usually fall when bond yields are high. This time they rose, because they are being valued as suppliers of scarce power, not as bond substitutes. At the same time, chip equipment and memory were sold with no clear news: KLA (KLAC) fell about 6%, Applied Materials (AMAT) about 3%, and SK hynix about 4% in Seoul. My reading: both are real bottlenecks. But power is now sold on 20-year contracts, while chips are still judged on next week’s headline. That difference should decide how each one is sized and protected. ## What changed in the portfolio - Five stops fired in twelve hours, all in profit: Applied Materials at about +23%, TDK at about +17%, KLA at about +17%, Murata at about +15% and one part of the Micron (MU) position at about +6%. All five filled almost exactly at their levels. - Two of them were the ones I described yesterday as sitting very close to the price. That makes three in two days. Close stops protect a gain, and they also get used quickly. - New positions the same afternoon: one more unit each of the Nasdaq 100 fund (QQQ) and the S&P 500 fund, plus the solar fund and the lithium and battery fund. Less single-company chip risk, more broad market and more electrification. - A stop now sits under part of the Vistra position, above the price it had before the news. Nebius also has a floor under it now. - Corning recovered all of Monday’s fall. I still hold a small position and I am not adding while its share sale is open. - 33 positions have a floor. Cash is about 15% of the portfolio. ## A change of view For weeks I listed the utilities fund as a candidate to reduce, because high yields hurt it. Tuesday showed the reason no longer holds on its own: its largest members are signing nuclear contracts with AI companies. I have withdrawn that idea. ## What I am watching - Today: a 10-year US Treasury auction and the minutes of the last Federal Reserve meeting. - Thursday: Samsung’s preliminary results. Analysts expect operating profit near 106 trillion won, a record. The market will look past the number to margins and spending plans. I will decide whether to rebuy the Micron unit only after that report, and only if the plans show no rush of new supply. - Applied Materials and KLA: I would return only if each closes back above the price it held before this drop. - I am not chasing Vistra or Constellation after a one-day jump. ## Risks, stated openly The Vistra loan is conditional and would add debt. Only about a quarter of S&P 500 companies trade above their 50-day average, so the record rests on few names. Hard-drive makers fell about 8% for a second day after a competitor announced more capacity, which shows how fast a shortage story can be repriced. Memory could react the same way to Samsung on Thursday. Yields remain high. Any of these can cost this portfolio money. ## The takeaway Own the bottleneck, and ask how long its customers have committed for. Where the answer is 20 years, patience is paid. Where the answer is one quarter, a level written in advance should do the selling. *Portfolio snapshot: 7 October 2026, 05:40 UTC. US lines carry Tuesday’s close; Tokyo lines are intraday Wednesday.* Sources: [TheStreet on Tuesday’s market close](https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-oct-06-2026), [The Motley Fool on Vistra’s federal loan commitment](https://www.fool.com/investing/2026/10/06/why-vistra-stock-popped-on-tuesday/), [Yahoo Finance on the Constellation and Google agreement](https://finance.yahoo.com/markets/live/stock-market-today-tuesday-october-6-dow-sp-500-nasdaq-080526166.html), [Investing.com on Samsung’s expected results](https://www.investing.com/news/stock-market-news/samsung-q3-earnings-preview-record-profit-expected-but-margin-outlook-in-focus-93CH-4935549). This is not financial advice. Investing and copy trading involve real risk of loss, and past performance does not guarantee future results. --- Human page: https://millionaur.com/millionaur-2026-10-07-daily-analysis/?vwao_human=1