Investing.com -- U.S. semiconductor stocks have rallied broadly in premarket trading on Tuesday, led by memory and AI infrastructure names as investor sentiment strengthens following apparent advances in peace talks between the U.S. and Iran.

The move follows a rise in Hong Kong and South Korea for artificial intelligence-related names.

Micron Technology is the standout mover, climbing 6% premarket after UBS more than tripled its price target on the stock to $1,625, citing the emergence of long-term supply agreements it said will structurally transform the company's earnings profile.

Marvell Technology has gained 5%, while Sandisk has added 3.1% and Qualcomm is up 2.4%. Advanced Micro Devices rose 2.7% and Arm Holdings gained 1.7%, while Nvidia, the bellwether of the AI chip trade, added 1.2%.

Last week, UBS raised its S&P 500 year-end price target to 7,900, citing "seemingly insatiable demand for data center infrastructure" as a key driver of upward earnings revisions.

The moves come as investors continue to monitor developments in the Middle East, where the ongoing closure of the Strait of Hormuz has added significant uncertainty to markets over the last few months.

However, apparent progress in U.S.-Iran peace talks has provided some relief to sentiment in premarket trading on Tuesday, although investors still remain somewhat cautious given the fragile nature of the situation.