MU, SNDK, NVDA, AMD: Chip Stocks Gain Premarket, Extending Relief Rallies

• Chips gain alongside a surge in major stocks in Monday’s premarket.
• Memory chip stocks SNDK, MU, WDC, and STC lead chip sector gains.
• Stocktwits sentiment was ‘bullish’ for INTC, SNDK, STX, MU, and TSM.

Major chip stocks gained in early premarket on Monday, extending a relief rally from last week, as investors took stock of the latest developments in the Iran-U.S. war.

The rally was led by memory semiconductor makers; SanDisk gained nearly 5%, while Micron rose 4.3%. Western Digital and Seagate rose around 3%.

Nvidia rose nearly 1%, while peer mega cap chip stocks Intel and Advanced Micro Devices advanced 2.3% and 1.1% respectively. Shares of Taiwan Semiconductor Manufacturing Co., the contract manufacturer for several U.S. chip designers, rose 1.6%.

Intel surged nearly 17% last week, marking its best weekly performance since late November after the company bought a 49% stake in its Irish data center joint-venture from Apollo Global Management. 

S&P 500 gained 3.4% and the iShares Semiconductor ETF (SOXX), which tracks chip stocks, gained 5% last week.

On Monday, U.S. stock futures gained. Over the weekend, President Donald issued a fresh warning to Iran, threatening to hit its energy and civilian infrastructure if the Strait of Hormuz is not reopened by Tuesday. However, he also said that Washington and Tehran were negotiating and a deal might be struck before the deadline.

Investors are squarely focused on the potential reopening of the Strait of Hormuz. Iran is blocking the narrow seaway, which is choking oil tanker movement and pushing prices higher.

On Stocktwits, the retail sentiment was ‘bearish’ for NVDA, ‘neutral’ for AMD and WDC, and ‘bullish’ for INTC, SNDK, STX, MU, and TSM.

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