Advanced Micro Devices is up more than 145% this year and could have more room to run

Advanced Micro Devices is the hottest stock of the year.

It's the best performer on the S&P 500 for 2018 by a mile. Its 146 percent surge since January is far better than the second-best S&P 500 performer, Abiomed, which has increased 105 percent.

One technician sees the possibility of a move back to levels not seen since June 2006.

"I see upside to the low $30s for this stock," said Craig Johnson, chief market technician at Piper Jaffray, Friday on CNBC's "Trading Nation." "The chart pattern still looks good."

A move to at least $30 represents an 18 percent rally from AMD's current levels.

Johnson wouldn't jump into AMD right now given its massive surge this year. He considers himself a buyer at a slightly more favorable entry point.

"I wouldn't be chasing it here today," Johnson added. "I'd wait for the stock to pull back, probably to about the $20 level in the next coming several weeks."

AMD's surge last week brought it above $20 a share. A pullback to return to $20 represents a 21 percent decline from current levels.

Chad Morganlander, portfolio manager at Washington Crossing Advisors, is wary of AMD and its chipmaker peers after their moves this year.

"This group has been white hot," Morganlander said Friday on "Trading Nation." "We're value investors. We would be trimming back on this trade and fading this trade."

Value investors look for stocks with cheap valuation relative to earnings as more of a defensive play. AMD and other chipmakers are considered growth stocks which are favored for their potential for expansion.

AMD trades at a price-earnings ratio of 42 times forward earnings, well above the 16.7 times multiple on the S&P 500.

"If you want a chip company that's good value with consistent growth we believe you may want to look at Qualcomm. We think that that has upside potential of greater than 15 percent over the next 18 months," added Morganlander.

Qualcomm trades at 15 times forward earnings. A 15 percent increase to current levels takes it up to around $77, a level not seen since November 2014.

Disclosure: Chad Morganlander's firm owns Qualcomm.

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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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