Micron Technology's stock is soaring 9.67% in pre-market trading on Monday, as investors react positively to a breakthrough in U.S.-China trade relations. The semiconductor giant's shares are rallying alongside other chip stocks following an unexpected agreement between the two economic powerhouses to significantly reduce tariffs on each other's goods.

The trade deal, which came faster than anticipated and with deeper tariff cuts than Wall Street expected, has particularly buoyed the semiconductor sector. Micron Technology, which jumped 7.6% to $92.39, is among the top gainers in the industry. Other chip companies also saw substantial gains, with Marvell Technology rising 6.4%, Advanced Micro Devices up 5.7%, and Super Micro Computer surging 7.9%.

This development is crucial for the semiconductor industry, which has been under pressure from the U.S.-China trade tensions. While chipmakers weren't directly targeted by tariffs, their products are often exported to China or other countries for assembly into electronic equipment that was expected to face tariffs when imported back to the U.S. The easing of these trade tensions is likely to improve the business outlook for Micron and its peers, potentially leading to increased demand and smoother supply chains in the near future.