AI Demand Surge Sends Micron Up 6%, Nasdaq Rallies Over 300 Points; Middle East Tensions Lift Oil Prices — BigGo Finance

U.S. stock markets on Monday saw a split session as optimism around artificial intelligence sent chipmakers sharply higher while escalating Middle East tensions and mixed economic signals kept broader gains in check. Micron Technology led the rally, surging $58.67, or 6.04%, intraday to reclaim the $1,000 level, helping the Nasdaq Composite rally by more than 300 points and the Philadelphia Semiconductor Index jump 325.36 points, or 2.62%.

"If Oman 'gets in the way,' the U.S. would bomb the country," U.S. President Donald Trump said in an interview on Monday, comments that underscored rising geopolitical risks after the U.S.-Iran ceasefire expired and negotiations stalled.

Drivers behind the chip surge

Two clear catalysts bolstered semiconductor sentiment. First, U.S. Commerce Secretary Howard Lutnick told interviewers last week that the Trump administration does not support Apple purchasing memory chips from China, a position markets read as likely to redirect procurement toward Taiwanese and South Korean suppliers and benefit U.S. memory makers such as Micron. Second, reported results from AI startup Anthropic — with second-quarter revenue exceeding $11.5 billion (approximately NT$370 billion) — reinforced expectations of accelerating AI infrastructure investment.

• Micron Technology: +6.04% intraday, up $58.67, reclaiming $1,000.
• Philadelphia Semiconductor Index: +325.36 points, or 2.62%.
• TSMC ADR: +2.00% (up $8.54); Nvidia: +0.72% (up $1.62); Apple: -0.69% (down $2.10).
• Anthropic: reported Q2 revenue > $11.5 billion; market chatter suggests a potential IPO as early as October with a possible valuation above $2 trillion.

Macro and geopolitical context

Geopolitical tensions capped upside for equities as the ceasefire between the United States and Iran lapsed and talks remained stalled. A senior Iranian official warned that Iran would shift to an offensive posture if diplomacy failed. The conflict backdrop helped lift oil prices, with West Texas Intermediate trading above $82 per barrel and Brent near $89 per barrel, each up roughly 1% intraday at one point.

On the macro front, recent retail sales came in below expectations while inflation measures remained relatively tame, tempering prospects for an imminent Fed rate hike and keeping investors focused on eventual rate cuts. Rory McPherson, chief market strategist at Wren Sterling, said the shift in rate expectations has provided a tailwind for technology stocks after a weak July.

Regional linkages and near-term risks

Taiwan’s market reflected the spillover from U.S. AI optimism. Foreign investors extended a net buying streak to five sessions, with combined net buying by the three major institutional investor groups of NT$51.66 billion (about $1.6 billion)—NT$45.35 billion from foreign investors and NT$7.97 billion from investment trusts. Yet caution remains ahead of a futures settlement: foreign net short positions exceed 85,000 contracts, raising the risk of sharp swings.

Looking ahead, investors will parse the Federal Reserve’s meeting minutes due Wednesday and a slate of retail earnings that includes Home Depot on Tuesday, Lowe’s on Wednesday and Walmart on Thursday for fresh clues on consumer momentum and the path for policy. With AI demand and geopolitics both in play, market direction this week looks set to hinge on policy cues and further corporate newsflow.