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Micron technology has reached new heights for over 20 years.
After marking a double upgrade from Citi, the stock hit its highest point since September 2000 on Tuesday. Citi analysts also gave a price target of $ 100 on an expected recovery in demand for memory chips. The stock closed Tuesday trading at $ 77.26.
Not everyone is so optimistic about the title. While Strategic Wealth Partners chairman Mark Tepper sees Micron as a wedge, he fears any supply and demand issues will hurt momentum.
“It’s a very, very cyclical semi, and their product is really, in my opinion, the input of the technology, it’s not the technology itself, so I prefer to own the technology,” Tepper said. to CNBC’s “Trading Nation” on Tuesday. “Nvidia is the way to go. This is our biggest exhibit of chips, and they are found in all of the fastest growing end markets that we find exciting – AI, autonomous vehicles, cloud, games. So I think that they have the best chips.. Nvidia, they innovate, 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 CNBC interview, MKM Partners’ chief market technician JC O’Hara said Micron’s technical setup supports Citi’s bullish case.
“This graphic looks fantastic,” he said. “There was a massive breakout last November. This breakout came from a three-year base where Micron traded in a range of $ 30. Now what usually follows these surges after a long period of consolidation is a very powerful bull run, which I believe we are still active at right now. “
O’Hara said the next move could take Micron to $ 85 in the near term – 10% higher from its close on Tuesday. Future profits could pose a risk or present a catalyst for action, he added. The company is expected to present its report on Thursday.
Disclosure: Strategic Wealth Partners owns NVDA.
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