MU Stock Leads Memory Chip Rally Amid Iran Relief – DRAM Surges 6% As SK Hynix, Samsung Gain

• The U.S. peace deal with Iran sent global markets higher on Monday.
• MU stock gained 8% in the premarket, while the Roundhill Memory ETF (DRAM) advanced 6%.
• Micron is scheduled to report its fiscal third-quarter results on June 24.

Micron stock rallied 8% in the premarket session on Monday, leading gains in the red-hot memory chip stocks, after U.S. President Donald Trump and Iranian officials announced a peace agreement expected to end months of conflict and reopen the strategically important Strait of Hormuz.

Seagate stock gained 6%, while SanDisk and Western Digital stocks gained 5.6% each. The Roundhill Memory ETF (DRAM) advanced 6%, supported by gains in Korean memory giants SK Hynix and Samsung.

SK Hynix shares gained 6.4% while Samsung stock rose 4.5% in Seoul on Monday. SK Hynix, Samsung, and Micron are the top three holdings of DRAM.

With the premarket move, Micron again breached the notionally crucial $1,000 market and was trading at $1,056. The stock has rallied 250% year to date, emerging as the main driver in interest in the memory chip space.

Memory Rally

A breakneck pace of AI data center buildout has driven incredible demand for memory components and chips, leading to shortages and price hikes. Major producers have seen significant growth in their businesses over the last year, with their stocks growing severalfold, and analysts expect favorable market dynamics to persist over the next few years.

SK Group chairman Chey Tae-won said last week that SK Hynix would increase wafer capacity three times by 2034 to keep pace with surging demand. 

Despite strong business forecasts, the sharp run-up in memory stocks has left investors questioning how much upside remains. As a result, retail traders have stayed cautious. On Stocktwits, retail sentiment was “bearish” on MU and DRAM.

“$SNDK $MU $DRAM Millionaires have been made on memory stocks this year....wow,” a trader said, capturing the euphoria for the sector. “Moon everything,” another trader wrote. 

The momentum is notable, given that Micron is scheduled to report its quarterly earnings on June 24.

US Stocks Jump As Iran War Nears End

U.S. stock futures rose, and oil prices fell early Monday, reacting to Trump’s war update. “The Deal with the Islamic Republic of Iran is now complete,” Trump said on his Truth Social account at 4:30 pm ET on Sunday. “Congratulations to all! I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade.”

In a follow-on post, he said the formal agreement would be signed on June 19, which is when the Strait of Hormuz would be opened “for purposes of mine removal, (and) oil will flow on both ends again for the Region.” 

Market expectations have shifted throughout the war, with broad rate-cut expectations fading and being replaced by higher-for-longer interest-rate environments across economies, CNBC reported.

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