MU, SNDK, Memory Stocks Buck Market Selloff After Fresh Trump Threats To Iran: Retail Traders Say ‘Never Sell, Buy Dips’
Donald Trump threatened fresh strikes on Iran after Tehran closed the Strait of Hormuz over hostilities in Lebanon, triggering a drop in global markets.
- Memory chip stock hit record highs on Thursday, the last day of trading last week.
- The relative strength index (RSI) of Micron was 66.4, SanDisk 70.9, Seagate 74, and Western Digital 78. A reading of 70 or above indicates overbought territory.
- Stocktwits sentiment was ‘bearish’ for SNDK and MU, ‘bullish’ for STX and ‘extremely bullish’ for WDC.
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 tensions surrounding U.S.-Iran diplomatic efforts.
Micron Technology shares rose 2.2%, while Seagate and Western Digital stocks were up 1% to 2%. The iShares Semiconductor ETF (SOXX) rose 1.6%.
Shaky US-Iran Peace Deal
On the other hand, U.S. stock futures declined and oil prices rose late Sunday as investors reacted to updates from the peace talks. Nvidia shares declined 1%.
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.
Memory Supercycle
Notably, MU, SNDK, WDC, and STX, along with the DRAM sectoral fund, hit record highs on Thursday, and fresh gains in Sunday’s overnight trading further underscore investor expectations of continued strength across the memory-chip complex and a degree of insulation from broader geopolitical risks.
The stock market was closed on Friday for Juneteenth.
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.
Recent Catalysts
WDC has 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.
Meanwhile, 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 View
On Stocktwits, the retail sentiment was ‘bearish’ for SNDK and MU, ‘bullish’ for STX and ‘extremely bullish’ for WDC.
“$SNDK never sell and buy dips and rips,” said a trader, with another questioning when the rally will give in.
Notably, the relative strength index (RSI) was 66.4 for Micron, 70.9 for SanDisk, 74 for Seagate, and 78 for Western Digital. A reading of 70 or above indicates overbought territory.
Another trader wrote: “$STX and $WDC continue looking attractive to me. Storage demand remains critical across nearly every technology trend. Not flashy, but important.”
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