/Micron stock scores a double upgrade and traders weigh in
Micron stock scores a double upgrade and traders weigh in

Micron stock scores a double upgrade and traders weigh in

Micron Technology just soared to highs not seen in more than 20 years.

After scoring a double upgrade from Citi, the stock on Tuesday hit its highest peak since September 2000. Citi analysts also gave a $100 price target on an expected upturn in memory chip demand. The stock closed Tuesday’s trading at $77.26.

Not everyone is as bullish on the stock. While Strategic Wealth Partners President Mark Tepper sees Micron as a hold, he worries that any supply and demand issues could put a dent in momentum.

“It’s a very, very cyclical semi, and their product really in my opinion is the input to technology, it’s not technology itself, so I’d rather own the technology,” Tepper told CNBC’s “Trading Nation” on Tuesday. “Nvidia is the way to go. That’s our largest chip exposure, and they’re in all the fastest-growing end markets that we find exciting — AI, autonomous vehicles, cloud, gaming. So I think they’ve got the best chips. Nvidia, they’re innovating, so that’s where I’d 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 chart looks fantastic,” he said. “There was a massive breakout last November. That breakout came from a three-year base where Micron traded in a $30 range. Now, typically what follows these breakouts after a long period of consolidation is a very powerful bull run, which I believe we are still on right now.”

O’Hara said the next move could take Micron to $85 in the near term — 10% upside from its Tuesday close. Upcoming earnings could pose a risk or present a catalyst for the stock, he added. The company is set to report Thursday.

Disclosure: Strategic Wealth Partners holds NVDA.

Disclaimer