Sell these "safe" blue chips immediately 
Sociedad Química y Minera’s Lithium Boom Is Back, But Iodine Steals the ShowWritten by Chris Markoch on August 20, 2026 
Key Points
- Sociedad Química y Minera is benefiting from a sharp rebound in lithium, but another part of the business is quietly adding stability.
- Iodine has continued to deliver steady pricing and record results even as lithium remains far more volatile.
- For investors, the contrast between lithium growth and iodine consistency helps explain why SQM is more than a one-commodity story.
- Special Report: A 17-year investing experiment investigated in Dublin
Sociedad Química y Minera de Chile (NYSE: SQM) delivered a blowout Q2 2026 earnings report. Revenue of $2.47 billion beat the consensus forecast of $2.24 billion by 10.3%. The company also beat on adjusted earnings per share (EPS) with the reported $2.31 coming in ahead of estimates of $2.04. Lithium deserves most of the credit. Revenue for the segment nearly quadrupled year over year (YOY), and the swing from a weak 2025 to a record 2026 pulled the entire company's results along with it. But buried underneath that headline is another story worth telling: iodine just posted its second straight record quarter, without any of the volatility.
A small Colorado company has secured rights to technology that could prevent the U.S. public power grid from collapsing — and billionaire Sam Altman is now an investor.
This under-the-radar firm is drawing serious attention from those watching the energy infrastructure space closely. Click here to learn this company's name for free today
SQM’s Lithium Business Comes Roaring BackThere's no understating how much lithium drove this quarter. Revenue for the segment hit $1.78 billion, up 300% YOY, on record sales volume above 84,000 metric tons of lithium carbonate equivalent. Average realized prices at SQM's Chilean joint venture, Novandino, reached about $21.80 per kilogram. That was up 23% from the prior quarter and roughly 160% higher than a year ago. That kind of move is exactly what makes lithium such a compelling trade and such an unpredictable business to own. A year ago, lithium was dragging down the company's results as oversupply crushed pricing. Now demand from battery storage systems has outpaced expectations, and SQM raised its full-year global lithium demand forecast to more than 2.1 million metric tons. The rise in lithium prices also shows up on SQM's bottom line. The segment generated 78% of the company's gross margin for the first half of 2026. That's a dramatic reversal from when lithium prices were depressed. It's also the reason SQM has been so volatile over the past year. It was up near $95 in May, down into the $60s by July, and back above $76 as of Aug. 19. Iodine Adds a Different Kind of StrengthThe story of SQM's quarter wouldn't be complete without a discussion of the role of iodine. It won't get the headlines that lithium does. Some of that is because iodine won't move a stock 20% in a week. But that's precisely the point. Average realized iodine prices hit an all-time high of about $73.40 per kilogram this quarter, up 2.6% year-over-year. Volumes grew 8% to 7,900 metric tons for the first half, and segment revenue rose 10% to $578.10 million. Demand continues to be led by X-ray contrast media, the largest application for iodine, supported by steady demand from industry, pharmaceuticals, and polarizing film. Iodine has now posted record pricing in back-to-back quarters. That's a level of consistency lithium simply doesn't offer investors right now. While lithium was swinging from a drag on earnings to the company's dominant profit driver, iodine kept setting new highs quarter after quarter without fanfare. Management isn't blind to what's coming, either. The company forecasted that third-party iodine supply will increase later this year, which could moderate sales volumes into year-end. Full-year production guidance still sits around 15,500 metric tons, supported by a seawater pipeline project that continues to ramp toward completion and gives the company added operational flexibility.
President Trump's administration is drafting a ban on Chinese-made components used inside American AI data centers - not chips, but a small, overlooked part that moves data through every facility.
The move stems from a new economic doctrine crafted by a controversial Silicon Valley CEO, one already reshaping which companies are considered safe investments.
Analysts Porter Stansberry and Luke Lango break down the full story and the shifts investors should watch. Watch the full interview before this new policy takes effect
SQM’s Second Growth Engine Deserves More AttentionThe bull case isn't that iodine outearns lithium. Iodine accounted for 16% of SQM's gross margin in the first half of 2026, a fraction of lithium's 78% contribution. But margin share and earnings quality aren't the same thing. Lithium is a commodity traded inside a mining company. Its pricing is tied to global EV adoption curves, battery storage demand, and a notoriously cyclical supply-demand balance that whipsawed from oversupply to shortage within 18 months. Investors buying SQM primarily for lithium exposure are signing up for that volatility, whether they intend to or not. Iodine behaves differently. Its end markets—medical imaging, pharmaceuticals, and industrial applications—are far less cyclical than EV batteries or grid storage. Pricing has moved in one direction for multiple quarters in a row, and SQM's push to expand production flexibility across four operations, aided by the seawater pipeline, points to a business built for steady optimization rather than boom-bust swings. SQM Is Still Investing Heavily in Its Lithium BusinessNone of this means investors should ignore lithium. It's currently the single biggest driver of SQM's earnings, and the company is putting real capital behind it. As a case in point, roughly 60% of its planned $3 billion in 2026-2028 capital expenditures is earmarked for Novandino alone, including the newly filed Salar Futuro project and the Mt. Holland expansion in Australia with partner Wesfarmers. But for investors trying to separate a durable long-term thesis from a cyclical trade, iodine offers a useful counterweight. It's the part of SQM's business that doesn't need a favorable commodity cycle to keep setting records—and in a stock this volatile, that kind of consistency is worth a second look, even if it never grabs the headline. Can SQM’s Earnings Rebound Keep the Stock Moving?SQM climbed over 2% after the earnings report. That continues the gains the stock has made since forming a bottom in late July. At around $76, SQM is trading near its 50-day and 200-day simple moving averages (SMAs). But this has not been a smooth and steady stock. SQM has round-tripped from roughly $46 last September to nearly $95 in May, then back down before this recent bounce. The encouraging news for investors is that SQM has found support near the $70 level on two separate occasions. Plus, although the stock is trading slightly above its consensus price target of $73.58, recent price targets have reached as high as $100. This quarter suggests that the lithium recovery narrative now has real numbers behind it, not just sentiment. Whether pricing momentum holds through year-end, especially with iodine facing new supply competition, will likely determine which direction the chart moves next. 
Read this article online › Featured Articles
Did you enjoy this article?  
|
