U.S. semiconductor stocks moved broadly higher in premarket trading on Tuesday, with memory chipmakers and AI infrastructure companies leading gains as market sentiment improved following signs of progress in negotiations between the United States and Iran.
The rally followed strength across Asian markets, where artificial intelligence-linked technology stocks advanced in both Hong Kong and South Korea.
Micron leads sector gains after bullish UBS upgrade
Micron Technology (NASDAQ:MU) emerged as one of the strongest performers, rising 6% before the open after UBS more than tripled its price target on the company to $1,625.
UBS said expanding long-term supply agreements across the memory sector could fundamentally reshape Micron’s earnings outlook over time.
AI and chip stocks extend broader rally
Elsewhere in the semiconductor sector, Marvell Technology (NASDAQ:MRVL) gained 5%, while SanDisk (NASDAQ:SNDK) advanced 3.1%.
Qualcomm (NASDAQ:QCOM) rose 2.4%, and Advanced Micro Devices (NASDAQ:AMD) added 2.7%.
Meanwhile, Arm Holdings (NASDAQ:ARM) climbed 1.7%, while AI chip leader NVIDIA (NASDAQ:NVDA) traded 1.2% higher.
UBS highlights data centre demand as major growth driver
Last week, UBS raised its year-end target for the S&P 500 index to 7,900, pointing to what it described as “seemingly insatiable demand for data center infrastructure” as a major factor supporting stronger earnings expectations.
Middle East developments remain in focus
Investors continue to monitor geopolitical developments in the Middle East, where the prolonged closure of the Strait of Hormuz has created heightened uncertainty across global financial markets in recent months.
However, indications of progress in U.S.-Iran peace negotiations helped improve sentiment in Tuesday’s premarket session, although investors remain cautious given the fragile and evolving nature of the situation.
Marvell Technology stock price