Semiconductor stocks are rebounding after recent weakness, with the leveraged semiconductor ETF forming a short-term bottoming pattern supported by stronger trading volume. Having already shaken out many stop-loss orders, the sector now faces a key technical test: whether it can reclaim the upper end of its current trading range. $SOXL
Optimism is being fueled by reports that mediators are proposing a 10-day ceasefire between the U.S. and Iran, easing geopolitical concerns and encouraging investors back into technology shares. Additional support came from a 3.6% overnight gain in South Korea’s KOSPI index, reinforcing the recent pattern of U.S. semiconductor stocks tracking Korean markets.
Investor enthusiasm is also building ahead of upcoming chip earnings, particularly Intel’s results later this week. Buying has been strongest in memory and storage names, including Micron, SK Hynix, Western Digital and Seagate, while networking and optical infrastructure companies have also attracted renewed interest. $MU $INTC $MRVL
Despite the improving tone, geopolitical risks remain elevated. Reports suggest President Trump is considering a broader military campaign against Iran to strengthen the U.S. negotiating position, although any escalation may be constrained by domestic political considerations.
Meanwhile, China is weighing new measures to support its equity market while simultaneously tightening restrictions on exports of advanced domestic AI technologies, highlighting the increasingly strategic nature of the global AI race. $WDC
