Micron technology has reached levels never seen for more than 20 years.
After getting a double upgrade from Citi, stocks on Tuesday reached their highest peak since September 2000. Citi analysts also set a $ 100 price target on an expected increase in demand for memory chips. The stock ended Tuesday’s trading at $ 77.26.
Not everyone is optimistic about stocks. Although Strategic Wealth Partners President Mark Tepper sees Micron as an obstacle, he fears that any supply and demand problems could undermine momentum.
“It is a very, very cyclical semi-cyclical, and its product really, in my opinion, is the entrance to the technology, it is not the technology itself, so I prefer to own the technology,” Tepper told CNBC’s Trading Nation. on Tuesday. “Nvidia is the way to go. This is our biggest chip exposure, and they are in all of the fastest growing end markets that we find interesting – AI, autonomous vehicles, cloud, games. So, I think they have the better chips. Nvidia, they’re innovating, so that’s where I would be. ”
Micron specializes in memory and storage chips; Nvidia, also a semiconductor company, is known for its graphics processing chips.
In the same interview with CNBC, MKM Partners’ chief market technician, JC O’Hara, said that Micron’s technical configuration supports Citi’s optimistic case.
“This chart looks fantastic,” he said. “There was a big breakout last November. That breakdown came from a three-year base where Micron was traded in the $ 30 range. Now, what usually follows these breaks after a long period of consolidation is a very powerful bull run, which I believe we are still connected to now. “
O’Hara said the next move could bring Micron to $ 85 in the short term – up 10% from Tuesday’s close. The next earnings may pose a risk or a catalyst for stocks, he added. The company is due to report Thursday.
Disclosure: Strategic Wealth Partners owns NVDA.
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