* Futures up: Dow 0.54%, S&P 500 0.78%, Nasdaq 1.16%

* Chip stocks lead gains

* Consumer confidence data at 10 AM ET

(Updates prices)

By Twesha Dikshit and Utkarsh Hathi

May 26 (Reuters) - U.S. stock index futures rose to

record highs on Tuesday, catching up after a public holiday, as

optimism in AI-related stocks offset some concerns over Middle

East peace talks following recent U.S. strikes on Iran.

Iran's Tasnim news agency reported that Tehran is seeking

the release of $24 billion of Iranian funds frozen overseas in

the deal that's being negotiated with the U.S.

U.S. Secretary of State Marco Rubio said on Tuesday the deal

could "take a few days," while President Donald Trump said in a

Truth Social post on Monday that talks with Iran were going

"nicely."

"Investors still appear willing to buy dips on the

assumption that the conflict ultimately de-escalates," said

Daniela Hathorn, senior market analyst at Capital.com.

Brent crude oil rose as much as 2% and global stocks wavered

as uncertainty lingered over whether a deal would be reached to

open up shipping flows through the Strait of Hormuz.

Semiconductor stocks, which have surged on AI-driven demand,

led gains in premarket trading. Marvell Technology ( MRVL ) rose

5.4%, Micron climbed 6.3%, while Intel ( INTC ), and

Qualcomm ( QCOM ) added 2.9% and 3%, respectively.

At 06:34 a.m., Dow E-minis were up 273 points,

or 0.54%, and S&P 500 E-minis were up 58.25 points,

or 0.78%. Nasdaq 100 E-minis were up 342.5 points,

or 1.16%.

Wall Street has been trading at record highs, with upbeat

earnings and confidence in AI trade driving equities higher

despite the ongoing conflict with Iran.

The blue-chip Dow became the last index to hit a

record high on Friday, its first since the Iran war began, while

the S&P 500 posted its best winning streak since December

2023.

With the earnings season nearly over, first-quarter earnings

growth is expected to be 29% year-on-year compared with the

16.1% estimated a month ago, according to LSEG data from

Friday.

Kevin Warsh was sworn in as chair of the Federal Reserve on

Friday. His appointment comes amid growing concerns about

inflation, driven by higher oil prices, which have added to

expectations of tighter global monetary policy.

Markets currently expect the Fed to keep rates on hold for

the rest of the year, with a 25 bps rate hike seen in December.

U.S. consumer confidence data for May is expected later in

the day, with higher gasoline prices due to the Middle East

conflict expected to weigh on consumer sentiment.

Among early movers, Joyy ( JOYY ) jumped 12% after the

Chinese social live-streaming platform posted first-quarter

revenue above expectations.

Pony AI's shares climbed 11.1% after the company

said it plans to expand its robotaxi fleet.