Nvidia Earnings and Samsung Strike Deal Send Memory Stocks Soaring Overnight

Nvidia's blowout quarterly report and Samsung's last-minute pay deal with its union have sent memory stocks soaring overnight. Micron led the gains, rising 2.4%, while SanDisk shares were up 2% and Western Digital shares gained 1.4%. The rally was also driven by a tentative agreement between Samsung and its workers to suspend an 18-day strike.

The union represents nearly 48,000 Samsung workers and will vote on the deal offered by the company on May 22 and May 27. If the votes pass, the risk of a prolonged disruption at Samsung would be alleviated, allaying investor concerns. A prolonged disruption at Samsung could have destabilized the broader AI hardware supply chain, delayed shipments, and slowed data center buildouts.

The sharp gains in memory stocks were also driven by Nvidia's robust quarterly report, which underscored strong demand for AI servers. Sales of memory chips closely track AI server shipments, with data centers emerging as the largest revenue driver in the semiconductor space.