Memory semiconductor stocks surged on Thursday, with SanDisk hitting an all-time high of $1,881.51, following President Donald Trump's announcement from the Oval Office that the U.S. and Iran could sign a peace deal as early as this weekend. The rally was driven by investor relief over the potential resolution of the Middle East conflict, which has disrupted shipping through the Strait of Hormuz since earlier this week when the two sides traded strikes. The broader semiconductor sector continues to benefit from strong AI-driven demand and rapid data center expansion, with analysts maintaining that memory chip demand will remain robust for years.
Trump Announces Potential U.S.-Iran Peace Deal from Oval Office
In an address from the Oval Office on Thursday, Trump stated that the U.S. and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping. "We just made a great settlement of the war with Iran," he announced. The two sides traded strikes earlier this week, straining a ceasefire announced in April. The Iran conflict is now in its fourth month, and investors are monitoring developments closely as any breakthrough could ease shipping disruptions and reduce uncertainty for companies with operations and customers across the Middle East.
Memory Stocks Post Double-Digit Gains on Thursday
SanDisk shares rose 14.5%—its best move in over a month—to hit an all-time high of $1,881.51. Micron shares surged 11.7%, while Western Digital stock gained 8% and Seagate Technology stock advanced 6.4%, pushing all three stocks within striking distance of the record closing highs they reached last week. The Roundhill Memory ETF (DRAM), which tracks key stocks in the memory semiconductor space including Samsung Electronics and SK Hynix, rose 13.5%. Samsung and SK Hynix shares were up 11% and 9%, respectively, in the early trading hours in Seoul on Friday.
SK Hynix Chairman Announces Wafer Capacity Expansion Plan
SK Group chairman Chey Tae-won said Wednesday that SK Hynix would increase wafer capacity three times by 2034 to keep pace with surging demand. Analysts and industry executives have consistently maintained that demand for memory chips is likely to remain strong for years, driven by AI growth and a rapid pace of data center buildout.
Stocktwits Sentiment Data Shows Mixed Retail Response
On Stocktwits, retail sentiment for SNDK flipped to 'bullish' from 'bearish.' The sentiment remained 'neutral' for DRAM and MU, 'bearish' for WDC, and 'extremely bearish' for STX. One trader stated, "$DRAM Every stock in DRAM is going totally parabolic bananas! $150 here we come." Another commented on Micron, saying that "if it ($MU) decisively breaks above $1,100 tomorrow, it could accelerate toward $1,500 next two weeks." Traders tracking SanDisk were watching to see whether the stock could extend its rally toward the $2,000 level, though some market participants were also weighing short positions after the recent run-up. SanDisk shares are up nearly 700% year to date, followed by Micron's 250% gains. DRAM has risen 123% since its launch on April 2.
FAQ
What did President Trump announce on Thursday regarding Iran?
President Donald Trump announced from the Oval Office on Thursday that the U.S. and Iran could sign a peace deal as early as this weekend that would reopen the Strait of Hormuz to shipping. He stated, "We just made a great settlement of the war with Iran."
Why did memory stocks rally on Thursday?
Memory stocks rallied on Thursday following Trump's announcement of a potential U.S.-Iran peace deal. The rally was driven by investor relief over the potential resolution of the Middle East conflict, which has disrupted shipping through the Strait of Hormuz since the two sides traded strikes earlier this week.
What capacity expansion plan did SK Hynix announce?
SK Group chairman Chey Tae-won said Wednesday that SK Hynix would increase wafer capacity three times by 2034 to keep pace with surging demand for memory chips driven by AI growth and data center expansion.
