Chip stocks are gaining today for several reasons.

Chip Stocks Make Gains Amid Market Shifts

On Monday, the chip stock benchmark index saw a rise, outpacing the broader market trends.

Shares of Micron Technology surged after the company raised its guidance.

Nvidia and AMD have entered a revenue-sharing deal with the U.S. government, while Intel’s CEO is set to meet with President Trump.

It seems like inventory is on the rise at the start of the week. This could be attributed to optimistic indicators showing demand and perhaps some hopes for improved relations with Washington.

Micron’s shares climbed by 3% on Monday following an upward revision to its fourth-quarter guidance, announced on August 28. The chip manufacturer has updated its non-GAAP revenue forecast from $10.7 billion to $11.2 billion, also boosting its earnings per share projection from $2.50 to $2.85. This is largely due to “improved pricing” in DRAM, with artificial intelligence ramping up the demand for its products, which are essential for quick data access.

Micron’s Chief Business Officer, Sumit Sadana, noted at a KeyBanc meeting that the compelling user applications emerging in the coming years hint at significant upgrades. Micron has even pledged $200 billion toward U.S.-based manufacturing, which isn’t just for the present but aims to enhance research and development for at least the next couple of decades.

The PHLX semiconductor index rose about 1% on the same day, while the S&P 500 remained relatively flat. Intel has recently seen an uptick of around 5%, as investors turned to social media to voice calls for the CEO’s resignation, yet they also appear optimistic about working with President Trump to boost the company’s stock.

Trump has expressed mixed feelings regarding Intel’s business ties with China, stating that he feels “very conflicted.” It’s reported he is set to meet with Intel’s CEO today.

Meanwhile, Nvidia and AMD are said to have agreed to share 15% of their revenues from Chinese chip sales with the U.S. government, as this condition was part of securing access to the Chinese export market. Recently, AMD shares rose by over 2.5%, while Nvidia’s stock has climbed even higher. Investors are looking forward to quarterly results from Nvidia later this month.