Micron technology rose to heights not seen in more than 20 years.
After getting a double update from Citi, stocks hit their highest level since September 2000 on Tuesday. Citi analysts also hit a $ 100 price target in an expected rise in demand for chips from memory. Shares closed Tuesday’s trading at $ 77.26.
Not everyone is so bullish on the stock market. While Strategic Wealth Partners president Mark Tepper sees Micron as a suspension, he worries that any supply and demand issues could cause a boost.
“It’s a very, very cyclical semi, and in my view its product is what technology brings, it’s not technology itself, so I prefer to own the technology,” Tepper told CNBC’s “Trading Nation”. “Nvidia is the way to go. This is our largest chip show and is in every of the fastest growing end markets we find exciting: AI, autonomous vehicles, cloud, gaming. So I think they have the best chips Nvidia, they are innovating, so this would be where it 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 market technician JC O’Hara said Micron’s technical setup supports Citi’s bullish case.
“This graphic looks fantastic,” he said. “A massive rupture occurred last November. This rupture comes from a three-year base in which Micron was trading at a range of $ 30. Now, typically what follows these breaks after a long period of consolidation is a very powerful bullfight, which I think is still underway right now. “
O’Hara said the next move could bring Micron to $ 85 in the short term, 10% more than Tuesday’s close. He added that upcoming gains could pose a risk or be a catalyst for stocks. The company will have to report on Thursday.
Disclosure: Strategic Wealth Partners has NVDA.
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