Stock that’s up almost 120 percent this year has way more room to run: Technician

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.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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