Mnuchin is a friend of the chips.
Chips stocks were rising Monday morning on news that United States and China have reached a tentative deal to cut trade deficits, with the U.S. holding off on implementing tariffs on Chinese goods.
Treasury Secretary Steve Mnuchin told "Fox News Sunday" on May 20 that the U.S. is putting China tariffs "on hold" as the two countries reach a tentative deal to cut trade deficits.
Micron Technology, Inc. (MU) - Get Micron Technology, Inc. (MU) Report shares were up 4.3% to $55.86 in morning trading on Monday, while NXP Semiconductors N.V. (NXPI) - Get NXP Semiconductors NV Report was up 2.7% to $114.03 and Intel Corporation (INTC) - Get Intel Corporation (INTC) Report was rising 2.2% to $54.68. Qualcomm Inc. (QCOM) - Get QUALCOMM Incorporated Report stock was up 0.8% to $57.98.
Stifel analyst Kevin Cassidy said that the news mean that these chipmakers could have an easier time with mergers and acquisitions going forward. Qualcomm's proposed $44 billion acquisition of NXP, for example, is still waiting to get regulatory approval from China's Ministry of Commerce, or Mofcom, the last major regulatory agency it needs to clear.
"If there come to be better agreements, then Mofcom issues might go away as well," Cassidy said.
Micron shares were also benefiting Monday from the company raising its revenue and earnings per share guidance for its fiscal third quarter, which ends in May. The company said its revised guidance was driven by "strong execution and healthy industry conditions."
Since the beginning of the year, Micron shares have increased 35% while Intel stock has increased 19%. Shares of NXP and Qualcomm have decreased by 3% and 10% respectively.
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