Chip stocks have been on fire this year, and one technician says the hottest name in the group is showing no signs of cooling off.
Micron is the best-performing technology stock this year, up nearly 120 percent, and according to Rich Ross of Evercore ISI, the stock has could rally another 25 percent from current levels.
“There’s been no stronger trend than semiconductors and technology, and this is the strongest stock within the group,” he said Monday on the “Trading Nation” segment of CNBC’s “Power Lunch.” “We think it’s going to [$60] here by virtue of that multiyear base breakout … the trend has not even come close to exhaustion,” he added. That’s roughly $15 higher than where the stock is trading, and would put the stock at its highest level in 17 years.
But even from a fundamental basis, Chantico Global CEO Gina Sanchez believes that the semiconductor space in general will rally on. Semis as a group are up about 46 percent this year, and industry trends, says Sanchez, will only drive stocks like Micron higher.
“You have augmented reality, virtual reality, AI, smart tech, smart manufacturing, and smart automotive,” she said on “Trading Nation.” “These are all massive trends that aren’t going away.”
Year to date, shares of Micron are up 117 percent.
Chip maker Micron, up almost 120% this year, has way more room to run, technician says