London-listed shares edged higher on Tuesday, with SanDisk and Arm Holdings emerging as standout performers in a session driven by renewed enthusiasm for semiconductor stocks. The FTSE 100 closed up 0.4% at 8,215 points, while the FTSE 250 added 0.3% to 20,540, as investors shrugged off earlier concerns over global trade tensions.
SanDisk, the memory chipmaker, saw its market capitalisation rise sharply after the company announced it was exploring a potential sale, according to reports. Shares in the firm jumped more than 6% on the day, making it one of the top percentage gainers. Arm Holdings, the British chip designer whose shares trade on both the Nasdaq and London, also climbed 3.8%, buoyed by optimism around its licensing revenue and growing demand for AI-powered processors.
Analysts at Shore Capital noted that the semiconductor sector has been a bright spot for global markets this quarter, driven by robust earnings from key players and expectations of further growth in data centre spending. “The moves in SanDisk and Arm reflect a broader rotation back into tech stocks, as investors bet on structural demand for chips in everything from smartphones to artificial intelligence,” said analyst James Harding.
For UK investors and pension holders, the rally in tech stocks offers a modest tailwind, given that many workplace pension funds have significant exposure to global equity markets through tracker funds. However, the FTSE 100 remains heavily weighted toward energy and financials, meaning the index’s gains were tempered by a slight dip in oil prices. Brent crude fell 0.8% to $82.50 a barrel, dragging down shares of BP and Shell.
The broader market backdrop remains cautious, with the Bank of England expected to hold interest rates steady at its next meeting. Still, Tuesday’s tech-led advance provided a welcome respite after a volatile start to the week. Currency markets saw the pound trade flat against the dollar at $1.28, while gilt yields edged lower as investors sought safe-haven assets amid ongoing geopolitical uncertainty.