Micron stock rallied 8% in the premarket session on Monday, leading gains among memory chip stocks. The rally followed a peace agreement announcement by U.S. President Donald Trump and Iranian officials, expected to end months of conflict and reopen the Strait of Hormuz. The Roundhill Memory ETF (DRAM) advanced 6%, supported by gains in SK Hynix and Samsung, which rose 6.4% and 4.5% respectively in Seoul on Monday. The rally reflects sustained demand for memory components driven by AI data center buildout, with Micron scheduled to report its fiscal third-quarter results on June 24.
Memory Chip Stocks Post Broad Gains on Monday
Seagate stock gained 6%, while SanDisk and Western Digital stocks gained 5.6% each in the premarket session on Monday. SK Hynix, Samsung, and Micron are the top three holdings of the Roundhill Memory ETF (DRAM), which advanced 6%. With the premarket move, Micron breached the $1,000 market cap level and was trading at $1,056. The stock has rallied 250% year to date.
Trump Announces Peace Agreement Details on Sunday
U.S. President Donald Trump posted on his Truth Social account at 4:30 pm ET on Sunday: "The Deal with the Islamic Republic of Iran is now complete. 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, Trump 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."
AI Data Center Demand Fuels Memory Sector Growth
A breakneck pace of AI data center buildout has driven 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. 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.
Micron Reports Fiscal Q3 Results June 24
Micron is scheduled to report its fiscal third-quarter results on June 24. Despite strong business forecasts, the sharp run-up in memory stocks has left investors questioning how much upside remains. On Stocktwits, retail sentiment was "bearish" on MU and DRAM. U.S. stock futures rose and oil prices fell early Monday, reacting to the peace deal announcement.
FAQ
What triggered the rally in Micron and other memory chip stocks on Monday?
Micron stock rallied 8% in the premarket session on Monday after U.S. President Donald Trump and Iranian officials announced a peace agreement expected to end months of conflict and reopen the Strait of Hormuz. The Roundhill Memory ETF (DRAM) advanced 6%, supported by gains in SK Hynix (up 6.4%) and Samsung (up 4.5%) in Seoul on Monday.
When is Micron scheduled to report its fiscal third-quarter earnings?
Micron is scheduled to report its fiscal third-quarter results on June 24.
