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This chipmaker's stock could see a DRAM-atic move up

When you tweet, "Talking Numbers" analyzes.

Recently, someone who goes by the name Pitbull Fan tweeted to "Talking Numbers" host Brian Sullivan, "I would like to see a technical analysis of $MU."

That stock, of course, is Micron Technology, which has gained a whopping 140 percent over the past 12 months alone. What's more, David Einhorn's Greenlight Capital is one of Micron's largest investors.

It's been a week of good news for the company. Earlier, RBC Capital upgraded the stock and raised its price target on the shares. Then, on Thursday, trade publication Digitimes reported several companies are planning on signing purchasing contracts with Micron.

According to JC O'Hara, chief market technician at FBN Securities, Micron's charts are looking up.

"I'm very bullish," said O'Hara about Micron's technicals. He believes the company broke out of a 10-year base pattern back in November, when it began trading above $19 per share and is now targeting $35 per share.

"Obviously, it's not going to move to $35 in one straight line," said O'Hara. "Just over the last few weeks, we saw it consolidate between $21 and $25."

O'Hara would buy if it got a little lower on the short term. "Love to buy it lower," he added. "Great long-term chart."

The fundamentals support O'Hara's positive technicals, says Marc Lichtenfeld, chief income strategist at The Oxford Club.

"Micron is on the right side of the supply/demand equation," Lichtenfeld said. "The demand for DRAM is very strong right now. It's expected to grow about 20 to 30 percent this year and supply is constrained. So, Micron has a lot of pricing power and visibility into the future."

Lichtenfeld also sees the stock as cheap because it trades at nine times its fiscal 2014 earnings compared with about 14 for the industry as a whole.

"Plus, it's a little bit of a contrarian play in that 11 percent of the float is sold short," he said. "If we do get a little bump higher, you could see some short covering which could further a stock advance. And, 13 analysts still don't like the stock. They have it at 'hold' or 'sell.' So, we could see some further catalysts in the form of upgrades."

Lichtenfeld added, "I do like the stock a lot here."

To see the full discussion on Micron Technology, with O'Hara on the technicals and Lichtenfeld on the fundamentals, watch the above video from CNBC's "Street Signs."

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