U.S. semiconductor equities saw broad gains in premarket trading on Tuesday, with memory and artificial-intelligence infrastructure names leading the uptick as investor sentiment improved amid apparent progress in U.S.-Iran peace discussions.
The advance followed earlier strength in Hong Kong and South Korea among companies tied to the AI theme.
Micron Technology stood out as the session's top mover, rising 6% in premarket activity after UBS more than tripled its price target on the stock to $1,625. UBS said the emergence of long-term supply agreements will "structurally transform" Micron's earnings profile.
Other notable premarket moves included Marvell Technology, up 5%; Sandisk, which added 3.1%; Qualcomm, rising 2.4%; Advanced Micro Devices, up 2.7%; and Arm Holdings, which gained 1.7%. Nvidia, frequently viewed as the bellwether for the AI-chip trade, increased 1.2%.
Separately, UBS raised its S&P 500 year-end price target to 7,900, pointing to "seemingly insatiable demand for data center infrastructure" as a primary factor driving upward earnings revisions.
Market participants said the moves come as attention remains focused on developments in the Middle East. The ongoing closure of the Strait of Hormuz in recent months has introduced heightened uncertainty across markets, and investors have been watching for signs that the situation might ease.
Premarket relief in sentiment followed reports of apparent progress in U.S.-Iran peace talks, but traders continued to express caution given the fragile nature of the situation.
Market context
- Premarket gains were concentrated in memory and AI infrastructure-related stocks.
- Micron's jump was tied to UBS's reassessment of its long-term earnings potential based on supply agreements.
- The broader market view was supported by UBS's higher S&P 500 year-end target, driven by strong demand for data center capacity.
Movers mentioned
- Micron Technology (MU) - +6% premarket
- Marvell Technology (MRVL) - +5%
- Sandisk (WDC) - +3.1%
- Qualcomm (QCOM) - +2.4%
- Advanced Micro Devices (AMD) - +2.7%
- Arm Holdings (ARM) - +1.7%
- Nvidia (NVDA) - +1.2%