U.S. Stocks Midday: Cloud Computing and Semiconductors Lead Gains as Mag 7 Momentum Returns
Alina Collins
US stocks rallied broadly Monday midday, with the Philadelphia Semiconductor Index up 4.61% to lead all benchmarks, driven by a US-Iran interim deal and aggressive analyst upgrades — capital surged from semis and cloud into mega-cap tech and crypto.
What triggered this rally?
The US and Iran reached an interim deal reopening the Strait of Hormuz — a chokepoint handling roughly a fifth of global oil shipments.
Trump posted on Truth Social that "oil-laden ships are moving out of the Strait along the fully safe, open southern route."
This means → geopolitical risk dropped sharply, unleashing a broad risk-on move: Nasdaq up 2.69%, S&P 500 up 1.74%, Dow up 1.26%.
Why are semiconductors leading by such a wide margin?
The Philadelphia Semiconductor Index surged 4.61%, far outpacing all three major indices. Micron rose 9.31%, Western Digital 14.98%, AMD 7.47%.
The direct catalyst: TD Cowen raised Micron's price target from $660 to $1,500; RBC lifted it from $525 to $1,200 — both more than doubling their targets.
RBC's note argues that AI-related capex from hyperscalers (Amazon, Microsoft, Google and peers) will persist through 2027, keeping memory demand strong and end-market supply tight.
In plain terms = analysts believe the "AI spending cycle" is far from over — memory chips will stay undersupplied for at least two more years, so they effectively doubled Micron's valuation.
Who is leading the cloud computing rally?
NEBIUS opened up over 9% to lead the group; CoreWeave gained over 7%; Oracle, Hut 8, and IREN Ltd each rose more than 4%.
Both NEBIUS and CoreWeave are set to join the Nasdaq 100 — passive funds tracking the index must buy in, providing an extra bid.
NEBIUS disclosed Q2 compute-lease renewal rates above expectations; CoreWeave announced a new long-term deal with a leading AI company.
This means → both stocks got a "index admission + business confirmation" double tailwind — flow support and fundamentals firing at the same time.
How strong is the Mag 7 rebound?
All seven mega-caps rose: Meta +4.96% led, Amazon +3.21%, Alphabet +3.20%, Microsoft +1.88%, Apple +1.85%, Nvidia +2.88%, Tesla +1.10%.
This reflects capital rushing back into large-cap blue-chip tech once geopolitical risk eased — Mag 7 reclaimed its role as the market's "first stop."
Why is crypto rallying too?
Bitcoin jumped over 4% to top $66,000; Ethereum surged nearly 10% back above $1,800.
Strategy founder Michael Saylor announced the company bought another 1,587 BTC for roughly $100 million, lifting its total reserve to 846,842 BTC.
Crypto-linked stocks rallied across the board: Circle +11%, Bitmine +8%, Coinbase, Robinhood, and Strategy each up over 7%.
In plain terms = when risk appetite returns, crypto tends to amplify the move — and Saylor's continued real-money buying added another shot of confidence.
Content is for reference only, not financial advice.