SanDisk shares gained nearly 3% in overnight trading ahead of Monday, leading gains among memory chip stocks that bucked a broader market selloff sparked by renewed U.S.-Iran tensions. Micron Technology shares rose 2.2%, while Seagate and Western Digital stocks climbed 1% to 2%, and the iShares Semiconductor ETF (SOXX) rose 1.6%. The gains came as U.S. stock futures declined and oil prices rose late Sunday following updates from peace talks, with Trump threatening fresh strikes on Iran after Tehran closed the Strait of Hormuz over hostilities in Lebanon. A joint statement from Qatar and Pakistan later announced the U.S. and Iran agreed to a roadmap toward a final deal within 60 days. Memory chip stocks hit record highs on Thursday and continued rallying despite broader geopolitical uncertainty, driven by AI-fueled data center demand over the past year.
Trump Threatens Iran Strikes as Peace Talks Produce 60-Day Roadmap
On Sunday, Trump threatened fresh strikes on Iran after Tehran closed the Strait of Hormuz over hostilities in Lebanon ahead of the first peace talks in Switzerland. Later in the day, a joint statement from mediating nations Qatar and Pakistan said the U.S. and Iran agreed to a roadmap toward a final deal within 60 days and that technical talks will continue for the rest of the week. U.S. stock futures declined and oil prices rose late Sunday as investors reacted to the updates. Nvidia shares declined 1%.
Memory Chip Stocks Hit Record Highs on Thursday Amid AI Demand
MU, SNDK, WDC, and STX, along with the DRAM sectoral fund, hit record highs on Thursday, the last day of trading last week. The stock market was closed on Friday for Juneteenth. Fresh gains in Sunday's overnight trading underscore investor expectations of continued strength across the memory chip complex and a degree of insulation from broader geopolitical risks. Memory chip stocks have surged over the past year on AI-driven demand for data centers. While companies and analysts still expect strong growth ahead, investors are increasingly debating how much of that optimism is already priced into shares and how much upside remains.
Micron Receives Analyst Upgrades as Apple Confirms Price Increases
WDC emerged as the top-watched stock in the group. Shares rallied 55% in just six sessions, with message volume for the ticker on Stocktwits rising 420% over the same period. MU received a series of price-target upgrades from Wedbush, Rosenblatt, and Stifel last week, while a remark from Apple's outgoing CEO added to the sector's bullish momentum and renewed optimism across memory chip stocks. Apple plans to raise retail prices across its hardware lineup to offset rising costs of memory and storage chips, with CEO Tim Cook saying the increases have become unavoidable amid mounting pressure from suppliers and the broader semiconductor supply chain. Micron will report its quarterly earnings on Wednesday.
Retail Traders Show Mixed Sentiment as RSI Readings Signal Overbought Territory
On Stocktwits, the retail sentiment was 'bearish' for SNDK and MU, 'bullish' for STX and 'extremely bullish' for WDC. The relative strength index (RSI) was 66.4 for Micron, 70.9 for SanDisk, 74 for Seagate, and 78 for Western Digital. A reading of 70 or above indicates overbought territory. One trader said: "$SNDK never sell and buy dips and rips," with another questioning when the rally will give in. Another trader wrote: "$STX and $WDC continue looking attractive to me. Storage demand remains critical across nearly every technology trend. Not flashy, but important."
FAQ
What did SanDisk and other memory chip stocks do in overnight trading ahead of Monday?
SanDisk shares gained nearly 3% in overnight trading ahead of Monday, leading gains among memory chip stocks. Micron Technology shares rose 2.2%, while Seagate and Western Digital stocks climbed 1% to 2%, and the iShares Semiconductor ETF (SOXX) rose 1.6%.
Why did memory chip stocks gain while the broader market sold off?
Memory chip stocks bucked a broader market selloff sparked by renewed U.S.-Iran tensions. On Sunday, Trump threatened fresh strikes on Iran after Tehran closed the Strait of Hormuz, causing U.S. stock futures to decline and oil prices to rise. A joint statement from Qatar and Pakistan later announced the U.S. and Iran agreed to a roadmap toward a final deal within 60 days.
What are the RSI readings for major memory chip stocks?
The relative strength index (RSI) was 66.4 for Micron, 70.9 for SanDisk, 74 for Seagate, and 78 for Western Digital. A reading of 70 or above indicates overbought territory.
