Why NVDA, MU, INTC, Other Chip Stocks Are Rising In Overnight Trading

The U.S. President Donald Trump and Iranian officials said Sunday that they had agreed to a peace deal, triggering gains in global markets.

• U.S. chip stocks Intel and AMD gained about 5% and Nvidia stock, remaining stubborn, gained just 2%.
• Stocktwits sentiment for NVDA and MU dipped to bearish territory late Sunday.
• As the war-linked reaction subsides, investors will return their focus on the U.S. Federal Reserve’s interest rate meeting later this week.

Major chip stocks Nvidia, Intel, Advanced Micro Devices and Micron rallied in overnight trading ahead of Monday, reacting to U.S. President Donald Trump’s announcement that a peace deal with Iran has been formalized.

Micron and AMD stocks jumped around 5% each, while Intel shares gained 4%. Nvidia stock, continuing its stubborn run, was up 2% – trailing the iShares Semiconductor ETF’s (SOXX) 3.7% gain. The widely-watched Roundhill Memory ETF (DRAM) gained 0.8%.

Trump Says Iran Deal Done

“The Deal with the Islamic Republic of Iran is now complete,” Trump said on his Truth Social account at 4:30 am 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.”

Unlike previous instances when Trump had said the Iran peace deal was happening, Tehran concurred with the U.S. President’s statement. “The text of the memorandum of understanding has been finalized,” Iran’s deputy foreign minister, Kazem Gharibabadi, said, according to a Wall Street Journal report. 

He reportedly said Iranian threats of attacks on Israel had put pressure on the U.S. to reach a deal. Trump on Sunday called on Israeli officials to cease attacks inside Lebanon, something Iran suggested was key to its acceptance of the deal. 

Global Markets Rise

Even though risks remain around the Iran peace deal actually getting through the finish line, the U.S. and global markets gained sharply. The SPDR S&P 500 ETF Trust (SPY) was up 1%, while the Invesco QQQ Trust Series 1 (QQQ) gained 1.7%.

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.

Retail View On NVDA, Chip Stocks

NVDA’s gains came after a mere 0.4% upward move last week. On Stocktwits, the retail sentiment for NVDA shifted to ‘extremely bearish’ late Sunday, compared to ‘bearish’ the previous day.

“$NVDA I will say a prayer tonight for those of you who were too stupid to get in here at the bottom pricing. I will see you winners of the NVDA type on the Monday morning. With all of that said I would sincerely buy right away as much as you can just to get on this green train,” a trader said.

In comparison, Intel shares gained 6.5% last week and AMD stock gained 4% – hitting fresh records. Micron stock declined 1.6% last week, mostly on Friday. Analysts at Goldman Sachs raised their price target but maintained a neutral stance on the stock.

The research firm cited elevated investor expectations ahead of Micron's June 24 earnings report. On Stocktwits, the retail sentiment for MU dipped to ‘bearish’ from ‘neutral.’ The sentiment for INTC and AMD remained ‘neutral’ and ‘bearish’ respectively.

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