Micron technology has just soared to highs not seen in more than 20 years.
After scoring a double upgrade from Citi, the stock hit its highest peak since September 2000 on Tuesday. Citi analysts also gave a price target of $ 100 on an expected increase in demand for memory chips. The stock closed Tuesday’s trading at $ 77.26.
Not everyone is so optimistic about the shares. Mark Tepper, President of Strategic Wealth Partners, sees Micron as a handhold, but he is concerned that supply and demand issues could dent momentum.
“It’s a very, very cyclical semi, and their product is really the input to technology in my opinion, it’s not the technology itself, so I’d rather have the technology in my possession,” Tepper told CNBC’s “Trading Nation” Tuesday. . “Nvidia is the way to go. That’s our greatest exposure to chips, and they’re in all of the fastest growing end markets that we find exciting – AI, autonomous vehicles, cloud, gaming. So I think they have the best chips. Nvidia,” they innovate, so there 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 CNBC interview, JC O’Hara, MKM Partners’ lead market engineer, said Micron’s technical setup supports Citi’s bullish case.
“This card looks fantastic,” he said. “There was a massive breakout last November. That breakout came from a three-year base where Micron was trading in a $ 30 range. What follows these breakouts after a long period of consolidation is typically a very powerful bull run, which I think we’re still on. “
O’Hara said the next move could bring Micron to $ 85 in the near term – 10% more than Tuesday’s close. Upcoming earnings could pose a risk or act as a catalyst for the stock, he added. The company reports on Thursday.
Disclosure: Strategic Wealth Partners Holds NVDA.
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