Micron Technology has just risen to unprecedented highs for more than 20 years.
After a double update from Citi, the stock peaked on Tuesday in September 2000. Citi analysts also set a $ 100 price target on an expected increase in demand for memory chips. The stock closed trading at $ 77.26 on Tuesday.
Not everyone is as bullish on the stock. While Strategic Wealth Partners President Mark Tepper sees Micron as a network, he worries that any supply and demand issues could make a splash.
“It’s a very, very cyclical semi, and their product is, in my opinion, the entry into technology, not the technology itself, so I’d rather own the technology,” Tepper told CNBC’s “Trading Nation.” “Nvidia is the way to go. This is our biggest exposure to chips and is in all the fastest growing end markets that we find interesting – AI, autonomous vehicles, cloud, games. So I think they have the best Nvidia chips, innovate, so I would be there. ”
Micron specializes in memory and storage chips; Nvidia, also a semiconductor company, is known for its graphics processing chips.
In the same CNBC interview, the chief market technician of MKC Partners, JC O’Hara, stated that Micron’s technical configuration supports the Citi bullish case.
“This chart looks fantastic,” he said. “A massive explosion took place in November last year. It came from a three-year base in which Micron traded in a range of $ 30. they are still in operation right now. “
O’Hara said the next move could bring Micron to $ 85 in the short term – up 10% from Tuesday’s close. Future revenue could be a risk or a catalyst for stocks, he added. The company is due to report on Thursday.
Disclosure: Strategic wealth partners own NVDA.
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