Micron Technology has only risen to the highs not seen in more than 20 years.
After Citi achieved a double upgrade from Citi, the stock reached its highest peak since September 2000 on Tuesday. Citi analysts also set a price target of $ 100 for an expected surge in demand for memory chips. The stock closed Tuesday’s trading at $ 77.26.
Not everyone is so strong on the stock. While President Te Strategic Wealth Partners Mark Tepper views Micron as a hold, he is concerned that supply and demand issues could put a dent in the aisle.
“It’s a very, very cyclical semi, and I think their product is the input for technology, it’s not the technology itself. That’s why I rather owned the technology,” Tepper told CNBC’s “Trading Nation” on Tuesday. . “Nvidia is the right way to go. It’s our biggest chip exposure, and they’re in all the fastest growing end markets we find exciting – AI, autonomous vehicles, cloud, games. So I think they have the best chips. Nvidia, they innovate, so this is 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 CNBC interview, JC O’Hara, chief market technician of MKM Partners, said that Micron’s technical setup supports Citi’s bullish case.
“This chart looks fantastic,” he said. “There was a huge outbreak last year. The outbreak came from a three-year basis where Micron traded in a range of $ 30. Now, typically, what follows these outbreaks after a long period of consolidation is” a very powerful bull run, which I think is still going on. ‘
O’Hara said the next step could increase Micron to $ 85 in the short term – 10% higher than Tuesday. Future earnings could pose a risk or be a catalyst for the stock, he added. The company will report on Thursday.
Disclosure: Strategic Wealth Partners owns NVDA.
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