MRVL, ON, SNDK Lead Chip Stock Rally As Trump Signals Iran War Nearing End

• MRVL jumped nearly 13%, while SNDK rose 11%.
• President Donald Trump said the U.S. would end its military campaign in Iran in two to three weeks.
• iShares Semiconductor ETF (SOXX), which tracks chip stocks, gained 3.1% – its sharpest rise in a month and a half.

Semiconductor stocks rallied on Tuesday, led by Marvel Technologies and ON Semiconductor, after the U.S. signaled that the war in Iran could come to a close in the coming weeks.

President Donald Trump said during an Oval Office briefing on Tuesday that the U.S. could wrap up its military campaign within two to three weeks, triggering sharp gains in stocks across the board.

The benchmark S&P 500 gained 2.9%, its strongest single-day performance in over 10 months. The iShares Semiconductor ETF (SOXX), which tracks chip stocks, gained 3.1% – its sharpest rise in a month and a half.

Gains were driven by a risk-on macro shift, fresh AI catalysts such as Nvidia’s $2 billion deal with Marvell, and quarter-end position squaring by investors.

Marvell shares gained 12.8%. Nvidia has invested $2 billion in Marvell, the companies announced on Tuesday, as part of a tie-up to integrate Marvell’s custom AI and networking chips with Nvidia’s processors and jointly develop new ones for data center use cases. Nvidia shares gained 5.6% on Tuesday.

On Semiconductor shares jumped 11.3%, their best in four months. Shares of Arm Holdings, which has seen renewed interest after unveiling its first-ever in-house chip, gained 10.5%. 

After sharp declines over the month, memory chip stocks also rebounded on Tuesday, with SanDisk jumping 11%, Seagate gaining 8%, and Western Digital 7.5%.

On Stocktwits, the retail sentiment for SOXX shifted to ‘bullish’ from ‘neutral’ the previous day, with the sentiment improving for several key stocks like NVDA, MRVL, and NBIS. 

“It was the last day of the quarter, which means a lot of rebalancing by hedge funds, target date funds, etc. A lot of buying in tech today because they were out of whack after the down trend the last few months,” a user said.

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